19. Revision of order prejudicial to revenue
119.Revision of order prejudicial to revenue. (1) The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the 2[Assessing] Officer is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such enquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment.
For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,—
(a) “record” shall include and shall be deemed always to have included all records relating to any proceeding under this Act available at the time of examination by the Commissioner;
(b) where any order referred to in this sub-section is the subject-matter of any appeal, the power of the Commissioner under this sub-section shall extend to all such matters as had not been considered and decided in such appeal.]
4[(2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed.]
(3) Notwithstanding anything contained in sub-section (2), an order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the 6[the National Tax Tribunal], the High Court or the Supreme Court.
In computing the period of limitation for the purposes of sub-section (2), 5[the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 of the Income-tax Act, as applicable to this Act by virtue of section 21 of this Act, and] any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.
1. See also Circular No. 394, dated 14-9-1984.
2. Substituted for “Income-tax” by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
3. Substituted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991. Prior to substitution, Explanation, as inserted by the Taxation Laws (Amdt.) Act, 1984, w.e.f. 1-10-1984, read as under :
For the removal of doubts, it is hereby declared that, for the purposes of this sub-section, an order passed by the Income-tax Officer shall include an order passed by the Inspecting Assistant Commissioner in exercise of the powers of an Income-tax Officer conferred on him under clause (a) of sub-section (1) of section 125 of the Income-tax Act as applied by section 21 of this Act.”
4. Substituted for the following by the Taxation Laws (Amendment) Act, 1984, w.e.f. 1-10-1984 :
“(2) No order shall be made under sub-section (1)—
(a) to revise an order of reassessment made under section 10, or
(b) after the expiry of two years from the date of the order sought to be revised.”
5. Inserted by the Finance (No. 2) Act, 1991, w.e.f. 1-10-1991.
6. Inserted by Act No. 49 of 2005 w.e.f. 20-12-2005.