Section 263 revision upheld where summary assessment lacked enquiry and the taxpayer-relief scheme could not be applied beyond its terms.

A summary assessment made under Section 143(1) can be revised under Section 263 where it is erroneous and prejudicial to the interests of the Revenue, particularly if the assessing authority failed to make the enquiry required by law. A taxpayer-relief scheme cannot be applied beyond its terms; in this context, the scheme was treated as inapplicable to ladies and minors where proper investigation of initial capital and related matters was absent. The revisional order was therefore supportable, and the Tribunal's contrary view was rejected.

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Issues: (i) Whether the Income-tax Commissioner could invoke revisional jurisdiction under Section 263 of the Income-tax Act, 1961 against an assessment made under Section 143(1) pursuant to the Government scheme for new taxpayers in the small-income group; (ii) whether the order of the Commissioner setting aside the assessment was valid in law; (iii) whether the Tribunal was justified in holding that the scheme compelled assessment under Section 143(1) in the case of ladies and minors without proper investigation of initial capital and related matters.

Issue (i): Whether the Income-tax Commissioner could invoke revisional jurisdiction under Section 263 of the Income-tax Act, 1961 against an assessment made under Section 143(1) pursuant to the Government scheme for new taxpayers in the small-income group.

Analysis: The questions were concluded by earlier decisions holding that the scheme did not apply to ladies and minors and that the assessment made without proper enquiry could be revised.

Conclusion: The Commissioner could validly interfere under Section 263.

Issue (ii): Whether the order of the Commissioner setting aside the assessment was valid in law.

Analysis: The assessment was found to have been made without the enquiry required by law, and the order was therefore not sustainable.

Conclusion: The order of the Commissioner was valid in law.

Issue (iii): Whether the Tribunal was justified in holding that the scheme compelled assessment under Section 143(1) in the case of ladies and minors without proper investigation of initial capital and related matters.

Analysis: The Tribunal's view that the scheme applied to ladies and minors was rejected, and the absence of proper enquiry supported the Commissioner's action.

Conclusion: The Tribunal was not justified in taking that view.

Final Conclusion: The reference was answered wholly against the assessee and in favour of the Revenue, and the Commissioner's revisional order stood upheld.

Ratio Decidendi: A summary assessment made without proper enquiry can be revised under Section 263 where the assessment is erroneous and prejudicial to the interests of the Revenue, and a taxpayer-relief scheme cannot be applied contrary to its terms.

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