Under Section 377 of the Income-tax Act, 2025, the Principal Commissioner or Commissioner can revise an order that is erroneous and prejudicial to the interests of revenue. Section 378 lets a taxpayer apply for revision of an order. They replace Sections 263 and 264 of the 1961 Act.
Income Tax, Income-tax Act 2025, across India
Income-tax Act, 2025
This page is for notices and orders under the Income-tax Act, 2025. If yours names the Income-tax Act, 1961, see Revision u/s 263 / 264 (1961 Act). Not sure which Act applies? The heading of the notice names it, or call us.
Overview
Section 377 works against the taxpayer: the Commissioner can set aside or modify an assessment, after giving an opportunity of being heard. Section 378 works for the taxpayer: it is an alternative to appeal, useful where an order is plainly against you and an appeal is not filed.
When this applies
- Commissioner believes an issue was not examined in the assessment (Section 377)
- Commissioner believes a claim was wrongly allowed (Section 377)
- Taxpayer seeks relief against an order without appealing (Section 378)
- Mistakes in claims that could not be corrected by rectification (Section 378)
Time limit
Documents needed
- The order under revision
- The show cause notice under Section 377, or your application under Section 378
- Assessment records showing the issue was examined
- Evidence supporting the claim
How we handle it
- Reply to the show cause notice showing that the order was neither erroneous nor prejudicial
- Show that the issue was examined and a possible view was taken
- For Section 378, draft the application with grounds and evidence
- Appeal against a Section 377 order before the Tribunal under Section 362
Points to note
- An order taking one of two possible views is generally not erroneous
- A Section 378 application is not available where an appeal has been filed on the same issue
- For orders under the 1961 Act, Sections 263 and 264 apply
What usually comes next
- Appeal to the Income Tax Appellate Tribunal under Section 362 of the Income-tax Act, 2025Appealing a Section 377 order
Frequently asked questions
Can I appeal against a Section 377 order?
Yes, before the Income Tax Appellate Tribunal under Section 362.
Should I choose revision under Section 378 or an appeal?
An appeal is usually preferred where facts are disputed. Section 378 can be quicker where the error is clear.
Official sources
- Income Tax e-Filing portalincometax.gov.inReply to notices under e-Proceedings and file first appeals
- Income Tax Appellate Tribunalitat.gov.inOrders, cause lists and bench information
- Income Tax Departmentincometaxindia.gov.inActs, rules, circulars and the 1961 to 2025 section utility
Received a notice or an order?
Call us to talk it through. Keep the notice and its response date handy.