Revisional scrutiny under the Gift-tax Act extends to relevant records, and the Tribunal must assess the order on that basis.

Revisional power under the Gift-tax Act permits the Commissioner to call for the record and examine other relevant materials to decide whether the Gift-tax Officer's order is erroneous and prejudicial to the Revenue, including issues such as the donor's capacity and the genuineness of the gift. The Commissioner is not confined to the assessment record if additional records assist that inquiry. The Tribunal erred in treating such reference as impermissible and in not properly testing whether the assessment had been made without adequate inquiry. Its order was set aside and the appeals were remitted for rehearing on the correct principles.

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Issues: (i) Whether, in exercising revisional power under the Gift-tax Act, the Commissioner could examine other records and materials relevant to determine whether the Gift-tax Officer's order was erroneous and prejudicial to the interests of the Revenue; (ii) Whether the Tribunal was justified in setting aside the Commissioner's revisional order and whether the matter required rehearing.

Issue (i): Whether, in exercising revisional power under the Gift-tax Act, the Commissioner could examine other records and materials relevant to determine whether the Gift-tax Officer's order was erroneous and prejudicial to the interests of the Revenue.

Analysis: The revisional power empowers the Commissioner to call for the record, make inquiry, or cause inquiry to be made where the subordinate order is both erroneous and prejudicial to the Revenue. In that process, reference to other relevant records and materials is not barred if they assist in determining the true character of the assessment and the genuineness of the gift.

Conclusion: The Commissioner was entitled to refer to other relevant records while exercising revisional jurisdiction.

Issue (ii): Whether the Tribunal was justified in setting aside the Commissioner's revisional order and whether the matter required rehearing.

Analysis: The Tribunal proceeded on the footing that necessary enquiries had been made and that reference to other records was impermissible, but those aspects did not adequately address whether the assessment order had been passed without proper inquiry into the donor's capacity and the genuineness of the gift. The matter therefore required reconsideration of the revisional order and the underlying assessment issue.

Conclusion: The Tribunal's order was set aside and the appeals were directed to be reheard.

Final Conclusion: The legal effect of the decision was that the Tribunal had to reconsider the Revenue's challenge to the assessment after applying the correct principles governing revisional scrutiny and inquiry into relevant materials.

Ratio Decidendi: In revision, the Commissioner may examine all relevant records and materials to determine whether the subordinate order is erroneous and prejudicial to the Revenue, and a tribunal must test the revisional order on that basis.

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