Section 263 revision upheld where inadequate enquiry left housing project deduction eligibility unverified under section 80IB(10).

Revision under section 263 of the Income-tax Act was upheld because the assessment, after remand, remained cryptic and did not record a clear finding on the actual commencement and completion of the housing project. The earlier remand required verification of the true commencement of construction, since the approval date alone did not decide eligibility under section 80IB(10). As the Assessing Officer did not show adequate enquiry or proper application of mind, the revisional order was sustained and the challenge failed.

---

---

Issues: Whether the Principal Commissioner was justified in revising the assessment under section 263 of the Income-tax Act, 1961 on the ground that the Assessing Officer failed to make proper enquiry and verify the assessee's claim of deduction under section 80IB(10) of the Income-tax Act, 1961.

Analysis: The assessment order passed after remand was found to be cryptic and lacking any clear factual finding on the actual commencement and completion of the housing project. The earlier remand had required verification of the true commencement of construction, since the date of approval alone was not determinative of eligibility under section 80IB(10) of the Income-tax Act, 1961. The record did not show that the Assessing Officer had carried out the necessary enquiry or recorded the outcome of such verification in compliance with the Tribunal's directions. In these circumstances, the order was treated as having been passed without adequate enquiry and without proper application of mind.

Conclusion: The revision under section 263 of the Income-tax Act, 1961 was valid and the challenge to the revisional order failed.

---