Section 263 jurisdiction fails where revision notice is issued by an officer lacking statutory competence.

Jurisdiction under section 263 of the Income-tax Act was held invalid where the revisionary notice was issued and signed by an Assistant Commissioner instead of the Commissioner, since the statutory power must be exercised by the competent authority after examining the record and hearing the assessee. The defect in the initiating notice was treated as going to the root of jurisdiction, and the revisionary order was quashed in favour of the assessee.

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Issues: Whether the assumption of jurisdiction under section 263 of the Income-tax Act, 1961 was valid when the notice initiating revisionary proceedings was issued and signed by an Assistant Commissioner of Income Tax and not by the Commissioner of Income Tax.

Analysis: The order under revision was passed under section 263 of the Income-tax Act, 1961. The Tribunal noted that the statutory power under section 263 is exercisable by the Commissioner after calling for and examining the record and after giving the assessee an opportunity of being heard. On the facts, the show-cause notice initiating the proceedings was signed by the Assistant Commissioner of Income Tax and not by the Commissioner. Following earlier coordinate and High Court authorities on the requirement that the revisionary notice must emanate from the competent statutory authority, the Tribunal held that the defect went to the root of jurisdiction.

Conclusion: The assumption of jurisdiction under section 263 was invalid and the revisionary order was quashed in favour of the assessee.

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