Section 263 revision fails where notice is issued by a subordinate officer and the assessment was already examined.

A revision under section 263 was held unsustainable because the show-cause notice was issued and signed by an Income Tax Officer (Technical) on behalf of the Commissioner, although the revisional power vests only in the Commissioner and cannot be delegated to a subordinate officer. That defect was treated as jurisdictional and not curable. The revision also failed because the Assessing Officer had already examined the relevant material in the assessment under section 143(3) and taken a view, so the revisional action amounted only to a change of opinion or second opinion, which is impermissible under section 263.

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Issues: Whether the revision order under section 263 of the Income-tax Act, 1961 was valid when the show-cause notice was issued and signed by an Income Tax Officer (Technical) on behalf of the Commissioner of Income Tax, and whether the order could stand when the Assessing Officer had already examined the relevant material and taken a view in the assessment under section 143(3).

Analysis: The notice initiating revision was held to be invalid because section 263 vests the revisional power in the Commissioner and does not permit delegation of that power to a subordinate officer. The defect was treated as going to the root of jurisdiction and not as a curable irregularity. The assessment order also showed that the Assessing Officer had considered the material and formed a view, so the revision amounted only to a change of opinion or second opinion, which is impermissible under section 263.

Conclusion: The revision order under section 263 was unsustainable and the assessee succeeded.

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