Revisional jurisdiction under income tax law: Commissioner's cancellation of summary assessments upheld by binding precedent.

The commentary examines revisional jurisdiction under the Income-tax Act in relation to assessments made under summary assessment procedures, stating that a Commissioner may invoke section 263(1) where the assessment is erroneous and prejudicial, subject to settled precedent. It notes that the challenge to the Commissioner's order cancelling assessments under section 143(1) was governed by earlier binding decisions on the same issue, and no separate ground displaced that authority. The stated conclusion is that the Tribunal's view was not accepted and the reference was answered in favour of the Revenue.

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Issues: Whether the Tribunal was right in holding that the Commissioner's order under section 263(1) of the Income-tax Act, 1961, cancelling the assessments made under section 143(1), was invalid.

Analysis: The questions referred arose from the Commissioner's revisional action under section 263(1) in relation to assessment orders made under section 143(1). The controversy was held to be covered by earlier decisions of the same Court dealing with the scope of revisional jurisdiction in similar circumstances, including the validity of setting aside such summary assessments. No distinct ground survived outside the binding effect of those decisions.

Conclusion: The reference was answered against the assessee and in favour of the Revenue; the Tribunal's view was not accepted.

Ratio Decidendi: A Commissioner may invoke revisional jurisdiction under section 263(1) of the Income-tax Act, 1961, in accordance with the settled law governing erroneous assessments, and the validity of such action must be tested by binding precedent on the same issue.

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