Allowing the appeal the  Tribunal held that  the authorities can exercise revisionary powers only on fulfilment of the essential conditions of finding error in the order sought to be revised and the error being such as causing prejudice to the Revenue. In the absence of any of the two conditions the power of revision under section 263 of the Act cannot be exercised. Having found no error in the assessment order himself, there was possibly no scope of the issue being examined again by the Assessing Officer, an officer junior in rank to the Principal Commissioner. There was no case therefore, for the Principal Commissioner to exercise any revisionary power under section 263 of the Act on the issue. The order passed by the Principal Commissioner under section 263 of the Act is  not sustainable in law.(AY.2013-14)