Revisional power under section 263 upheld despite completed assessment and possible reopening under section 147.

The Orissa HC considered whether the Commissioner could invoke revisional power under section 263 of the Income-tax Act despite completed assessment proceedings and the availability of reopening under section 147. It noted that section 263 contains no restriction preventing revision merely because an assessment has already been made after enquiry. The Court accepted that, on the material on record, the Commissioner could form the view that further enquiry was necessary. It therefore found no question of law calling for a reference and upheld the revisional action under section 263, rejecting the petition.

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Issues: Whether the Commissioner could validly exercise revisional power under section 263 of the Income-tax Act, 1961, notwithstanding the assessment proceedings and the availability of reopening under section 147 of the Income-tax Act, 1961.

Analysis: The petition sought a reference on the scope of section 263, contending that the assessment had already been made after enquiry and that reopening under section 147 was available. The Court held that the language of section 263 placed no restriction on the Commissioner's revisional power and that, on materials available on record, the Commissioner could form the view that further enquiry was required. In that view, no question of law warranted a reference.

Conclusion: The revisional action under section 263 was upheld and the petition was rejected.

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