The Tribunal held that Principal Commissioner can exercise powers under section 263 of the Act on satisfaction of twin conditions: the assessment order is erroneous and prejudicial to the Revenue’s interests. This power of revision can be exercised only where no enquiry, as required under the law, is done. It is not open to enquire into a case of inadequate inquiry. The Tribunal also held that if a notice under section 263 of the Act raises a new issue not the subject matter of reassessment proceedings, the two year period contemplated under sub-section (2) of section 263 of the Act would begin from the date of the original assessment and not from the date of reassessment. The revision proceedings were time barred. (AY. 2011-12)
Karan Polymers Pvt. Ltd. v. PCIT (2022)97 ITR 56 (Kol) (Trib)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Unaccounted money-Assessee receiving money and repaying it subsequently-Inadequate inquiry-Revision order is held to be not valid-Limitation period from original date of assessment and not from the date of reassessment-Revision time barred.[S. 143(3), 147]