In Brief
The Commissioner of Income Tax challenged a High Court order that quashed a revision order passed under Section 263 of the Income Tax Act, 1961, on the ground that it was barred by limitation. The key issue was whether the two-year limitation period is determined by the date the Commissioner 'makes' the order or the date the assessee 'receives' it. The Supreme Court held that Section 263(2) uses the word 'made', not 'received', making the date of the order's issuance—not its receipt—the relevant date. The order passed on 26 March 2012 was within the two-year period from 31 March 2012 (end of the financial year 2008–09), regardless that the assessee received it in November 2012. The appeal was allowed and the revision order was held to be within the period of limitation.
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