The AO completed assessment accepting the returned income consisting agricultural income after examining the assessee’s replies and documents. The Principal CIT later invoked section 263 powers, claiming the assessment order was erroneous and prejudicial to the interests of the revenue. ITAT observed that when an AO had assessed the assessee at returned income after examining detailed replies and documents explaining the agricultural income, the assessment order cannot be deemed to be erroneous and prejudicial to the interests of revenue for the purposes of section 263.Hence the order under section 263 by the PCIT was set aside. (AY. 2012-13)