In Civil Writ Petition No. 7200/2023 -RAJ HC- For determining period of limitation under Section 264(3) of Income Tax Act, date of communication of the order or date on which the assessee becomes aware of the order is relevant, clarifies Rajasthan High Court
Justice Manindra Mohan Shrivastava & Justice Praveer Bhatnagar [04-07-2023]

Read Order: Naresh Joshi v. The Principal Commissioner of Income Tax-2 And Ors

Chahat Varma

New Delhi, July 24, 2023: In a recent decision, the Jaipur bench of the Rajasthan High Court has set aside an order passed by the Principal Commissioner of Income Tax (PCIT), Jaipur-2, which rejected a revision application on the grounds of delay. The High court ruled that the rejection on the grounds of delay, considering the date of passing the order rather than the date of communication, was per se illegal, according to Section 264(3) of the Income Tax Act.

In the matter at hand, the grievance of the petitioner was on account of rejection of an application seeking revision and refund of TDS amount.

The bench comprising of Justice Manindra Mohan Shrivastava and Justice Praveer Bhatnagar highlighted that the provisions of Section 264(3) of the Income Tax Act clearly indicated that the relevant date for determining the period of limitation was the date of communication of the order or the date when the assessee becomes aware of the order.

In light of the aforementioned reasons, the bench set aside the order passed by the PCIT, Jaipur-2 and directed the PCIT to reconsider the application under Section 264 of the Income Tax Act on its own merits.