Section 264 of the Income-tax Act, 1961: Revision of Other Orders

Meaning and scope of section 264

Revision is reconsideration of an order by a superior statutory authority. Under section 264(1), the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner may act on an assessee's application or on the authority's own motion in relation to an order of a subordinate authority, other than an order covered by section 263. The authority may examine records, conduct or direct inquiries and issue an appropriate order, provided it is not prejudicial to the assessee.

Distinction: Section 263 addresses orders erroneous and prejudicial to the interests of the revenue, whereas section 264 is a non-prejudicial revision remedy.

Subsection-wise explanation

Section 264(1): Power to revise

The competent authority can call for the record of a subordinate authority's proceeding, make inquiries and revise the order in a manner not prejudicial to the assessee, subject to statutory restrictions.

Section 264(2): Revision on own motion

An authority cannot initiate revision on its own motion under this section where the order was made more than one year earlier.

Section 264(3): Application deadline and condonation

An assessee must apply within one year of communication of the order or the date of otherwise becoming aware of it, whichever is earlier. A delayed application may be admitted if sufficient cause prevented timely filing.

Section 264(4): Restrictions when appeal is available or pursued

Revision is restricted when the order is appealable and the relevant appeal period or waiver conditions apply, or when an appeal is pending or the order has already been appealed, as specified in clauses (a) to (c). The applicable appellate forum and waiver rules should be checked before filing.

Section 264(5): Prescribed fee

The application must be accompanied by a fee of Rs. 500.

Section 264(6): Time for disposing of application

Ordinarily, the revision order must be passed within one year from the end of the financial year in which the assessee filed the application. Statutory exclusions apply for rehearing and court-ordered stays; the precise computation must follow the amended statutory wording.

Section 264(7): Effect of appellate court directions

An order giving effect to a finding or direction of the Appellate Tribunal, High Court or Supreme Court may be passed notwithstanding the ordinary disposal deadline.

Explanations

A decision declining to interfere is deemed not prejudicial to the assessee for purposes of the section. The provision also addresses the status of the Deputy Commissioner (Appeals) as a subordinate authority.

How to seek revision

1. Identify the order, its communication date and whether an appeal has been filed or remains available.
2. Check jurisdiction, the applicable law and the one-year limitation period.
3. Prepare a reasoned revision application, enclosing the impugned order, relevant documents and evidence of the prescribed fee.
4. If filing late, explain the sufficient cause and request condonation of delay.
5. Respond to any inquiry or hearing notice and retain proof of submission.

Revision does not automatically stay tax demand or recovery. Any stay must be sought separately under the applicable provisions.

Income-tax Act, 2025: Corresponding section 378

With effect from 1 April 2026, section 378 of the Income-tax Act, 2025 addresses revision of other orders under that Act. It identifies the competent authority, preserves the basic non-prejudicial revision framework, specifies appeal-related exclusions, a Rs. 500 application fee and time limits, and expressly provides for excluded periods and a minimum residual period in specified cases. Section 264 remains relevant where the repeal and savings provisions preserve the application of the 1961 Act to earlier matters. The governing statute should be determined for the particular order and tax year.

Frequently asked questions

Can a revision under section 264 increase my tax liability?

The revisional order under section 264 must not be prejudicial to the assessee.

What is the time limit for filing?

Generally one year from communication or earlier knowledge of the order, with power to condone delay on sufficient cause.

Can revision and appeal proceed together?

Section 264(4) limits revision where appellate remedies are available, pending or exercised. Check the exact statutory conditions before choosing a remedy.

What is the application fee?

Rs. 500 under section 264(5).

Official legislation and guidance

• Income Tax Department: Section 264, Income-tax Act, 1961
• Income Tax Department: Income-tax Act, 1961 as amended by Finance Act, 2025 (PDF)
• Income Tax Department: Limitation periods
• Income Tax Department: E-filing portal