Revision under section 263 unavailable where deduction issues were already decided in appeal

Section 263 revision cannot be used to reopen deduction issues under sections 35B, 80J and 80HH after those matters have already been examined and decided in appeal by the Commissioner of Income-tax (Appeals). Once the appellate authority has adjudicated the admissibility of those deductions and recorded findings, the revisional jurisdiction is unavailable on the same issues. The cited principle is that matters considered and decided in appeal are not open to revision under section 263.

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Issues: Whether the Commissioner of Income-tax could invoke section 263 of the Income-tax Act, 1961 to revise an assessment on issues of deduction under sections 35B, 80J and 80HH when those very issues had already been considered and decided in appeal by the Commissioner of Income-tax (Appeals).

Analysis: The appellate order showed that the admissibility of deductions under sections 35B, 80J and 80HH had been thoroughly examined in appeal and findings had been recorded. Once the appellate authority had already adjudicated those matters, the same issues could not be reopened in revision under section 263. The revisional power was therefore unavailable on questions that had already been the subject of appellate consideration.

Conclusion: The revision under section 263 was without jurisdiction on the issues already decided in appeal, and the answer was against the Revenue and in favour of the assessee.

Ratio Decidendi: Section 263 cannot be invoked to revise matters that have already been considered and adjudicated by the appellate authority.

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