Site navigation

Consider the following statements about revision under the Income-tax Act, 2025: Statement 1: Under…

Section 377(1) allows revision of an order "erroneous in so far as it is prejudicial to the interests of the revenue" after hearing the assessee, so Statement 1 is right and…

Choose your answer

Consider the following statements about revision under the Income-tax Act, 2025:
Statement 1: Under section 377, the Competent Authority may revise an order of the Assessing Officer that is erroneous in so far as it is prejudicial to the interests of the revenue, after giving the assessee an opportunity of being heard.
Statement 2: Under section 378, the Competent Authority may pass an order that is prejudicial to the assessee.
Statement 3: For section 377, the "Competent Authority" includes a Joint Commissioner.
Which of the statements is or are correct?

Select one answer
Answer and explanation

Correct answer A

Section 377(1) allows revision of an order "erroneous in so far as it is prejudicial to the interests of the revenue" after hearing the assessee, so Statement 1 is right and "Only Statement 1 is correct". Statement 2 is wrong because section 378(1)(c) permits only an order "not being an order prejudicial to the assessee". Statement 3 is wrong because section 377(8)(a) limits the Competent Authority to the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner.

Practice for these exams

Related exam syllabi

Related questions in this topic