Swaminarayan Mandir Trust Vs CIT (Exemptions) (Bombay High Court)
The recent decision of the Bombay High Court in Swaminarayan Mandir Trust Versus Commissioner of Income Tax (Exemptions), Mumbai & Ors., Writ Petition No. 2162 of 2025, decided on 24 December 2025, once again brings into sharp focus the true width, purpose and remedial character of the revisional jurisdiction under Section 264 of the Income-tax Act, 1961, particularly when juxtaposed with the appellate remedy available under Section 246A. The ruling assumes importance not merely for charitable trusts claiming exemption under Section 11, but for all assessees who, owing to inadvertent or bona fide errors in return filing, find themselves denied substantive relief despite being otherwise eligible in law.
At the threshold, it is necessary to appreciate the statutory architecture governing post-return remedies.
Section 143(1) provides for summary processing of returns through an automated mechanism, permitting only limited and specified adjustments.
Section 154 enables rectification of mistakes apparent from the record, but its scope is narrowly confined and does not extend to debatable issues or matters requiring investigation, appreciation of evidence or application of discretion.
Section 246A enumerates appealable orders, including intimations issued under Section 143(1), thereby conferring on the assessee a statutory right of appeal before the Commissioner of Income Tax (Appeals).
