Revisionary power under section 263 fails where enquiry was made and factual findings support the assessment.

The Tribunal was justified in cancelling the Commissioner's revisionary order under section 263 because the Assessing Officer had made the necessary enquiries and the assessment could not be treated as erroneous and prejudicial to the interests of revenue merely for being completed quickly. The Tribunal relied on the registered trust deed and supporting material to find that the trust had been validly created and was carrying on business. It also rejected the Commissioner's objection based on the rule against perpetuity under section 14 of the Transfer of Property Act, 1882. The Tribunal's conclusions were essentially findings of fact, and those factual findings supported setting aside the revision.

---

---

Issues: Whether the Tribunal was justified in setting aside the Commissioner's revisionary order passed under section 263 of the Income-tax Act, 1961.

Analysis: The assessment for the relevant year was revised by the Commissioner on the ground that it had been completed in haste and without proper enquiry, and was therefore erroneous and prejudicial to the interests of revenue. The Tribunal, however, found that the Assessing Officer had made the necessary enquiries and that the trust deed was a registered document supported by material on record. It further held that the trust had in fact been created and was carrying on business, and rejected the Commissioner's objection based on the rule against perpetuity under section 14 of the Transfer of Property Act, 1882. The findings recorded by the Tribunal were essentially findings of fact.

Conclusion: The Tribunal was justified in cancelling the Commissioner's order under section 263.

---