Revision under section 263 upheld against section 143(1) assessments; natural justice and mechanical exercise challenges failed.

The Patna HC held that the Commissioner could validly invoke revisionary jurisdiction under section 263(1) of the Income-tax Act to set aside assessments made under section 143(1), and rejected the contention that such power was unavailable on the facts. The Court also dismissed objections that the revisional order was vitiated by breach of natural justice, reliance on surmises and conjectures, or a mechanical exercise of power. Relying on earlier decisions of the same Court involving identical issues, it upheld the revisional orders and answered the reference against the assessee.

---

---

Issues: Whether the Commissioner could invoke revisionary jurisdiction under section 263(1) of the Income-tax Act, 1961, to set aside assessment orders made under section 143(1), and whether the impugned revisional order was invalid for breach of natural justice, being based on surmises and conjectures, or having been passed in a mechanical manner.

Analysis: The questions referred were held to be covered by earlier decisions of the same Court involving identical issues. On that basis, the revisional orders under section 263(1) were upheld and the Tribunal's view that the Commissioner lacked jurisdiction or had acted invalidly was rejected. The Court did not accept the challenges founded on alleged breach of natural justice, surmises and conjectures, or mechanical exercise of power.

Conclusion: The revisional jurisdiction was held to be validly exercised and the reference was answered against the assessee.

---