Revision under Section 264 of the Income Tax Act, 1961, allows a taxpayer to request the Commissioner of Income Tax (CIT) to review and revise any order passed by a lower income tax authority, such as the Assessing Officer. This provision is a form of relief for taxpayers who believe that an assessment or other order is unjust or incorrect but who may not wish to appeal through the formal appellate process.
Any individual, business, or entity can apply for revision under this section, provided they file the application within one year from the date of the order. However, the CIT also holds the power to revise an order suo moto (on their own) within one year, even if the taxpayer hasn’t filed a request.
The key advantage of Section 264 is that it offers a flexible, taxpayer-friendly route for rectifying errors or omissions in tax assessments, especially in cases where filing an appeal may not be feasible or desirable. The Commissioner is empowered to either confirm, modify, or cancel the original order, depending on the merits of the case.
In practical scenarios, small business owners and startups may use this.