Facts of the Case

The petitioner filed a revision application under Section 264 of the Income Tax Act, 1961 around 20.02.2020, challenging an assessment order dated 21.12.2019 passed under Section 144 of the Act. However, the concerned authority failed to dispose of the revision application within the prescribed time frame.

The grievance raised before the Delhi High Court was the inordinate delay by the respondent authority in deciding the revision application.

Issues Involved

  1. Whether the respondent authority failed to comply with the statutory time limit for disposal of a revision application under Section 264 of the Income Tax Act, 1961.
  2. Whether the petitioner is entitled to relief due to administrative delay in deciding the revision application.

 Petitioner’s Arguments


  • The petitioner contended that the revision application filed under Section 264 had not been disposed of within the prescribed period of one year.
  • It was argued that such delay defeats the purpose of the statutory remedy provided under the Act.
  • The petitioner sought a direction from the Court for expeditious disposal of the revision application.
  • The respondent/revenue chose not to file a counter-affidavit and submitted that the matter could be argued based on the existing record.

    • The Court acknowledged that the statutory time frame for disposal of a revision application under Section 264 is one year.
    • Considering the delay, the Court disposed of the writ petition with the following directions:
      • The respondent authority shall dispose of the revision application within eight (8) weeks from the date of receipt of the Court’s order.
      • Until the disposal of the revision application and for four (4) weeks thereafter, no coercive action shall be taken against the petitioner.

    Important Clarification


    • The Court did not adjudicate on the merits of the assessment order.
    • Relief was limited to ensuring timely disposal of the revision application.
    • Interim protection from coercive action was granted to safeguard the petitioner’s interests.

     Sections Involved


    • Section 264, Income Tax Act, 1961 – Revision of orders by Commissioner
    • Section 144, Income Tax Act, 1961 – Best Judgment Assessment

     Link to download the order -https://delhihighcourt.nic.in/app/showFileJudgment/RAS08052023CW58602023_145543.pdf

     

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