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The assessee is a limited company and has the support of the professionals. Therefore it is not expected from such company to move the appeal before the learned CIT (A) and also make application for the revision under section 264 of the Act simultaneously which is unwanted under the provisions of law. Thus the question arises whether the assessee has done so intentionally or due to negligence.

Shanti Prime Publication Pvt. Ltd.

Sec. 246A & 264 of Income Tax Act, 1961 – Revision – Assessment was made under section 143(3) of the Act after making certain additions/disallowances to the total income of the assessee. The assessee against the assessment order preferred an appeal to the CIT(A) and also filed the revisionary application under section 264 of the Act. However, the CIT under section 264 of the Act dismissed the application for the revision of the order framed under section 143(3) of the Act by the AO. Subsequently, the appeal which was filed against the assessment order was also dismissed by the CIT (A) by observing that the appeal filed before him is not maintainable as the order of the AO has been merged with the order of the CIT under section 264 of the Act. Therefore, there cannot be any appeal before him against the revision order passed by the CIT under section 264 of the Act. ITAT allowed the appeal of the assessee holding that:- the appeal of the assessee was pending before the CIT(A) during the relevant time when the matter was decided by the CIT under section 264 of the Act. Therefore, CIT under section 264 has exceeded his jurisdiction by passing the order which is not sustainable in the eyes of law. Appeal partly allowed – DIGJAM LTD. Vs. ASSTT. CIT [2020] 79 ITR (TRIB) 263 (ITAT–RAJKOT)