The assessee filed a rectification application under section 154 against an intimation under section 143(1), seeking set-off of unabsorbed business loss against long-term capital gains. The CPC did not allow the claim. On a revision application under section 264, the Principal Commissioner rejected it on the ground that the Deputy Commissioner, CPC, did not report to him. Held, that such reasoning was incorrect. CPC is only a processing mechanism and does not displace jurisdiction of the AO under section 120. Therefore, the Principal Commissioner had jurisdiction to entertain the revision petition, and rejection was unjustified.(AY. 2016-17)