Revisional jurisdiction over summary assessments under the small income taxpayers scheme upheld under section 263(1).

The Patna HC held that the Commissioner of Income-tax could exercise revisional jurisdiction under section 263(1) of the Income-tax Act, 1961 to interfere with a summary assessment made under section 143(1) under the small income taxpayers scheme. The Tribunal had taken the view that such revision was not available, but the Court followed its earlier decisions on similar facts and upheld the Commissioner's power to revise the assessment. The reference was answered in the negative against the assessee and in favour of the Revenue.

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Issues: Whether the Commissioner of Income-tax could exercise revisional jurisdiction under section 263(1) of the Income-tax Act, 1961 to interfere with a summary assessment made under section 143(1) under the small income taxpayers scheme.

Analysis: The reference arose from an assessment made under the Government scheme for new taxpayers in the small income group, where ladies and minors were directed to be assessed under section 143 of the Income-tax Act, 1961. The assessment was later cancelled by the Commissioner under section 263(1). The Tribunal held that the Commissioner lacked jurisdiction, but the Court followed its earlier decisions on similar facts and held that such revisional power was available and properly exercised.

Conclusion: The Tribunal was wrong in holding that the Commissioner of Income-tax could not interfere under section 263(1); the reference was answered in the negative, against the assessee and in favour of the Revenue.

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