Pursuant to an amalgamation, the transferor company filed a revised return claiming book depreciation in accordance with the revised financial statements. The Principal Commissioner invoked section 263, alleging excess depreciation by relying on figures pertaining to the transferee company. The Tribunal held that the revision proceedings were founded on incorrect factual assumptions, whereas the depreciation claimed by the transferor company had already been verified by the Assessing Officer and was consistent with the revised financial statements. As there was no error in the assessment order, the revision under section 263 was quashed. (AY. 2017-18)