Commissioner invoked revisionary jurisdiction under S. 263 of the Act setting aside the assessment and directed AO to make a fresh assessment as he did not make an enquiry about the AIR information received regarding cash deposits made in the bank account of the assessee. Tribunal found that Commissioner had not concluded on the issue of inadequacy of cash in hand but required the AO to do so. Tribunal held that Commissioner required to decide the aspect one way or the other before he could determine that the assessment order was erroneous. The initiation of proceedings under S. 263 of the Act were inconsistent with the requirement of S. 263(1) of the Act and therefore set aside by the Tribunal. (AY.2009-10)
Adishwar K. Jain v. CIT (2019) 201 TTJ 77 / 52 CCH 606 / 181 DTR 29 (Mum.)(Trib.)
S. 263 : Commissioner–Revision of orders prejudicial to the revenue–Commissioner required to decide the issue before determining the assessment order as erroneous and unsustainable in law–Order of Commissioner set aside. [S. 143(3)]