Powers of Commissioner to revise orders of subordinate authorities.

25.   (1) The Commissioner may, either of his own motion or on application made by an assessee in this behalf, call for the record of any proceeding under this Act in which an order has been passed by any authority subordinate to him, and may make such inquiry, or cause such enquiry to be made, and, subject to the provisions of this Act, pass such order thereon, not being an order prejudicial to the assessee, as the Commissioner thinks fit:

Provided that the Commissioner shall not revise any order under this sub-section in any case—

(a)    where an appeal against the order lies to the ⁴¹[Deputy Commissioner (Appeals)] ⁴²[or to the Commissioner (Appeals)] or to the Appellate Tribunal, the time within which such appeal can be made has not expired or in the case of an appeal ⁴³[to the Commissioner (Appeals)] or to the Appellate Tribunal the assessee has not waived his right of appeal ;

(b)    where the order is the subject of an appeal before the ⁴⁴[Deputy Commissioner (Appeals)] ⁴³[or the Commissioner (Appeals)] or the Appellate Tribunal ;

(c)    where the  application is made by the assessee for such revision, unless—

         (i)  the application is accompanied by a fee of twenty-five rupees; and

        (ii)  the application is made within one year from the date of the order sought to be revised or within such further period as the Commissioner may think fit to allow on being satisfied that the assessee was prevented by sufficient cause from making the application within that period; and

(d)    where the order is sought to be revised by the Commissioner of his own motion, if such order is made more than one year previously.

Explanation.—For the purposes of this sub-section,—

(a)    the ⁴⁴[Deputy Commissioner (Appeals)] shall be deemed to be an authority subordinate to the Commissioner; and

(b)    an order by the Commissioner declining to interfere shall be deemed not to be an order prejudicial to the assessee.

(2) Without prejudice to the provisions contained in sub-section (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 an ⁴⁵[Assessing Officer] is erroneous in so far as it is prejudicial to the interests of revenue, he may, after giving the assessee an opportunity of being heard, and after making or causing to be made such inquiry 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 it and directing a fresh assessment.

⁴⁶[Explanation.—For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,—

(a)    an order passed ⁴⁷[on or before or after the 1st day of June, 1988] by the Assessing Officer shall include an order made by the ⁴⁸[Joint] Commissioner in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on or assigned to him under orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Board in this behalf under section 120 of the Income-tax Act read with section 8 of this Act ;

(b)    “record”, ⁴⁹[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;

(c)    where any order referred to in this sub-section and passed by the Assessing Officer had been the subject matter of any appeal ⁵⁰[filed on or before or after the first day of June, 1988], the powers of the Commissioner under this sub-section shall extend ⁵⁰[and shall be deemed always to have extended] to such matters as had not been considered and decided in such appeal.]

⁵¹[(3) No order shall be made under sub-section (2) after the expiry of two years ⁵²[from the end of the financial year in which the order sought to be revised was passed.]

Explanation.—In computing the period of limitation for the purposes of sub-section (3), the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 39 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.]

⁵³[(3A) On every application made by an assessee for revision under sub-section (1), an order shall be passed by the Commissioner within one year from the end of financial year in which such application is made by the assessee for revision.

Explanation.—In computing the period of limitation for the purposes of this sub-section, the time taken in giving an opportunity to the assessee to be re-heard under the proviso to section 39 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded.]

⁵⁴[(4) Notwithstanding anything contained in sub-section (3) or sub-section (3A), an order in revision under sub-section (1) or sub-section (2) may be passed at any time in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, ^55a[National Tax Tribunal] the High Court or the Supreme Court.]