Section 378 — Revision of other orders. Successor to s.264 of the 1961 Act.
Section 378 is in Chapter XVIII — Appeals Revisions and Alternate Dispute Resolutions, which runs from section 356 to section 389.
Sub-section (1) gives the Competent Authority power, for any order other than one to which section 377 applies passed by an authority subordinate to him, either of his own motion or on an application by the assessee for revision, to call for the record of the proceeding in which the order was passed, to make or cause an inquiry to be made, and, subject to the provisions of the Act, to pass such order as he thinks fit, not being an order prejudicial to the assessee.
Sub-section (2) bars a revision on his own motion where the order was made more than one year previously. Sub-section (3) requires an application by the assessee to be made within one year from the date on which the order was communicated to him or the date on which he otherwise came to know of it, whichever is earlier. Sub-section (4) allows the Competent Authority to admit a late application if satisfied that the assessee was prevented by sufficient cause from making it in time.
Sub-section (5) bars revision in three situations: where an appeal against the order lies to the Joint Commissioner (Appeals), the Commissioner (Appeals) or the Appellate Tribunal but has not been made and the time for it has not expired; where such an appeal lies and the assessee has not waived his right of appeal; and where the order has been made the subject of such an appeal.
Sub-section (6) requires every application for revision to be accompanied by a fee of Rs. 500. Sub-section (7) requires an order on such an application to be passed within one year from the end of the financial year in which the application is made. Sub-section (8) excludes from that period the time taken in giving the assessee an opportunity to be reheard under section 244(2), and the period of a court stay ending on receipt of the certified copy of the order or injunction vacating it. Sub-section (9) extends the remaining period to sixty days where, after those exclusions, less than sixty days are left. Sub-section (10) provides that, irrespective of sub-section (7), a revision order may be passed at any time in consequence of or to give effect to a finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court.
Sub-section (11) defines "Competent Authority" as the Principal Chief Commissioner, Chief Commissioner, Principal Commissioner or Commissioner, and provides that an order by the Competent Authority declining to interfere shall not be deemed to be an order prejudicial to the assessee.
Not every wrong order is appealable, and this section gives a taxpayer a route to a senior officer for those that are not. Its shape follows from that purpose: the power can only be used in the assessee's favour, it is closed off wherever an appeal is available and still open, and it is bounded in time at both ends so that a revision does not become a second appeal or an indefinite one.
| What | Figure | The condition on it | Where |
|---|---|---|---|
| Limit on revision by the Competent Authority of his own motion | One year | He shall not of his own motion revise an order made more than one year previously | Sub-section (2) |
| Time for an assessee to apply for revision | Within one year | From the date the order was communicated to him or the date he otherwise came to know of it, whichever is earlier; a late application may be admitted for sufficient cause under sub-section (4) | Sub-section (3) |
| Fee accompanying the application | Rs. 500 | Every application by an assessee for revision under this section | Sub-section (6) |
| Time to pass an order on the application | Within one year from the end of the financial year in which the application is made | Subject to the exclusions in sub-section (8) and the sixty-day extension in sub-section (9); no limit at all where sub-section (10) applies | Sub-section (7) |
| Minimum period left after exclusions | Sixty days | Where, after excluding the periods in sub-section (8), the time limit under sub-section (7) leaves less than sixty days | Sub-section (9) |
The two one-year periods in sub-sections (2) and (3) are different things: one caps how far back the Competent Authority can reach on his own motion, the other is the assessee's own deadline, and the assessee's clock starts on communication of the order or on his coming to know of it, whichever is earlier — so knowledge acquired before formal communication shortens the period rather than lengthening it. Sub-section (5) is the practical gate: while an appeal lies and its time has not expired, or the right of appeal has not been waived, revision is not available at all, so a taxpayer must choose and, if he wants revision, waive the appeal. The relief is one-directional — sub-section (1)(c) forbids an order prejudicial to the assessee — but sub-section (11)(b) makes clear that refusing to interfere is not prejudicial, so a bare declination is not open to attack on that footing. The disposal deadline in sub-section (7) is generous in one direction only: sub-section (10) removes it altogether for an order giving effect to a finding or direction of the Appellate Tribunal, the High Court or the Supreme Court.
An assessee is served with an order on 10 April 2026 and applies for revision on 20 March 2027, with the Rs. 500 fee — inside the one year allowed by sub-section (3). The application is made in the financial year 2026-27, so under sub-section (7) the Commissioner has until 31 March 2028 to pass an order on it. Had the assessee also appealed the same order to the Commissioner (Appeals), sub-section (5)(c) would have closed the revision route entirely.
You meet this as the revision application filed with the Principal Commissioner or Commissioner against an order for which no appeal is available or where the appeal right has been waived, and as the order passed on it — including an order simply declining to interfere.
pass such order thereon, not being an order prejudicial to the assessee, as he thinks fit
within one year from the date on which the order in question was communicated to him or the date on which he otherwise came to know of it, whichever is earlier
Every application by an assessee for revision under this section shall be accompanied by a fee of Rs. 500.
an order by the Competent Authority declining to interfere shall, not be deemed to be an order prejudicial to the assessee
See the full 1961 to 2025 concordance.
See the circulars index.