“Section 264(4)”
The decision most relied on for Section 264(4) is Parikh & Co. v. CIT (122 ITR 610), cited in 27 judgments on BharatTax.
Leading authorities on Section 264(4)
The Commissioner can exercise revisional powers under Section 264 in favour of the assessee to pass an order that is not prejudicial to them, based on the record of any proceeding.
The Commissioner can grant relief to an assessee under Section 264 of the Income Tax Act, even when the order under Section 144A is part of the record and should have been considered. The CIT was wrong in not providing relief for over-assessment due to under-totalling of purchases.
Where an assessee does not plead that cash credits arose from past intangible additions, the Tribunal cannot assume they are covered by such additions. If an alternate plea that tangible additions in the past covered current cash credits is not raised earlier and not substantiated, its rejection is justified.
Lower authorities are bound to accept the decisions of appellate authorities without reservation. If this healthy rule is not followed, it results in undue harassment to assessees and chaos in tax administration.
The word 'record' when used in relation to revisionary powers under Section 263 of the Income Tax Act, 1961, is not restricted to material available before the Assessing Officer, but can include material obtained subsequently. This distinguishes it from revisionary powers under Section 264, which may have a narrower scope.
