Section 263 revision power extends to summary assessments under section 143(1)(a), despite Circular No. 176

Section 263 of the Income-tax Act was held to be of wide amplitude and capable of revising a summary assessment made under section 143(1)(a), because the provision contains no words excluding such orders from its scope. Circular No. 176 did not curtail the statutory revisional power; at most, it noted a restriction against revision where the tax effect is negligible. The Commissioner therefore had jurisdiction to invoke section 263 against the summary assessment, and the Tribunal's contrary view was not legally sustainable.

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Issues: Whether the Commissioner had jurisdiction under section 263 of the Income-tax Act, 1961 to revise a summary assessment made under section 143(1)(a) of the Act in the light of Circular No. 176 dated August 26, 1987.

Analysis: Section 263 is of wide amplitude and enables revision of any order passed by the Assessing Officer, including a summary assessment order under section 143(1)(a). The provision contains no limiting words excluding summary assessments from its scope. The circular relied on did not take away the statutory revisional power, and the only restriction noticed was a direction against revision where the tax effect is negligible.

Conclusion: The Commissioner had jurisdiction to invoke section 263 against the summary assessment order, and the Tribunal's contrary view was not legally sustainable. The question was answered in favour of the Revenue and against the assessee.

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