Tribunal clarifies AO's power in revisional jurisdiction, quashing CIT's decision under section 263.

The Tribunal allowed the appeal by the assessee, condoning the delay in filing based on partnership dissolution and wrong advice. It held that the AO, not the Commissioner, has the power to trigger revisional jurisdiction and quashed the CIT's decision under section 263. The Tribunal stressed the need to follow statutory provisions and delineated the distinct roles of the AO and Commissioner in assessments.

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Issues: Delay in filing appeal, Exercise of revisional jurisdiction under section 263 of the Income-tax Act.

Delay in filing appeal:
The appeal was filed with a delay of 1124 days, and the reasons provided included the dissolution of the partnership firm, partners being separated and unreachable, and wrong advice from a partner. The Tribunal, after perusing the affidavit, decided that the delay should be condoned in the interest of justice and fair play, allowing the appeal for hearing.

Exercise of revisional jurisdiction under section 263 of the Income-tax Act:
The CIT exercised revisional jurisdiction under section 263 based on a proposal from the AO, citing the assessment order as erroneous and prejudicial to the interest of revenue due to lack of verification of advances received from 10 parties. The Tribunal analyzed section 263, emphasizing that the power to revise orders prejudicial to revenue is vested with the Commissioner, not the AO. The Tribunal referred to relevant case laws to support the contention that the AO cannot trigger revisional jurisdiction after failing to properly inquire within the prescribed time limit. Consequently, the Tribunal quashed the usurpation of jurisdiction under section 263 by the CIT, allowing the appeal filed by the assessee.

In conclusion, the Tribunal allowed the appeal by the assessee, highlighting the importance of adhering to the statutory provisions regarding the exercise of revisional jurisdiction and emphasizing the distinct roles of the AO and the Commissioner in the assessment process.

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