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An assessee, who has failed to claim ‘Long Term Capital Loss’ in ITR, is allowed to seek revision under Section 264: Gujarat HC
Surat Trade and Mercantile Limited v. Principal Commissioner Of Income Tax Surat 1 & Anr. CA No. 9157 of 2024
Facts:
1. The Petitioner had filed a revision application under Section 264 of the Income Tax Act before the Commissioner, claiming that the person, who was responsible for filing return of income, forgot to claim LTCG of Rs. 121.88 lakhs, arising on account of extinguishment of certain shares.
2. The revision came to be rejected by the Principal Commissioner on the ground that intimation under section 143(1) of the Income Tax Act was already issued and merely because the petitioner had erroneously not claimed the LTCG in the return of income, it cannot be allowed a second inning to revise the return of income.
Hon Gujarat HC held as below:
1. Sec 264 empowers the Income Tax Commissioner to revise certain orders. This revision can be initiated by the authority or upon application by the assessee.
2. Bombay HC in Pramod R. Agrawal v. Principal Commissioner of Income Tax considered various judgments on the scope of power under section 264 of the Act. For instance, in Asmita Damale v. CIT, the High Court held that the Commissioner, while exercising revisionary powers under Section 264, has to ensure that there is relief provided to assessee where the law permits the same. It was also held the Commissioner has to take into consideration relevant material that would have a bearing on the issue for consideration.
3. The decision was followed by the Gujarat High Court in Jindal Worldwide Limited vs The Principal Commissioner of Income Tax wherein, in similar circumstances, the Principal Commissioner was directed to reconsider the claim, which was left out in the original proceeding, on merits.
4. The Principal Commissioner Surat is directed to decide afresh assessee’ revision petition within 12 weeks, after giving opportunity of hearing to the petitioner to submit requisite documents.
The copy of the order is as under: