Revisional power for lack of enquiry: assessment on TDS for winnings was open to section 263 review.

An assessment order can be revised under section 263 where it does not show enquiry into a materially relevant TDS issue and the record does not demonstrate that the Assessing Officer verified the assessee's explanation. Here, the issue concerned deduction of tax at source on winnings paid to players under section 194B. Although the assessee had furnished details on the payout mechanism, prize structure, and statutory threshold, the assessment order did not reveal any meaningful examination of those materials. The revisional authority was therefore justified in directing further enquiry, since the lack of visible application of mind rendered the order erroneous and prejudicial to the interests of the Revenue.

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Issues: Whether the revisional order under section 263 was justified on the ground that the Assessing Officer had not made adequate enquiry into tax deduction at source on winnings paid to players under section 194B.

Analysis: The assessee had placed material before the Assessing Officer regarding the mechanism of payout, the prize structure, and deduction of tax at source on winnings exceeding the statutory threshold. The assessment record showed that the issue of withholding tax on winnings was raised during assessment, but the assessment order did not reveal any verification or application of mind on whether the details furnished were examined in the light of Chapter XVII-B and section 194B. On the facts, the absence of an evident enquiry on the TDS issue rendered the assessment order susceptible to revision on the ground of lack of enquiry.

Conclusion: The revisional jurisdiction under section 263 was validly exercised to the limited extent of directing enquiry into deduction of tax at source on winnings under section 194B, and the challenge to that extent failed.

Ratio Decidendi: Where the assessment order does not disclose examination of a materially relevant TDS issue and the record does not show that the Assessing Officer verified the assessee's explanation, the order can be revised under section 263 as erroneous and prejudicial to the interests of the Revenue for lack of enquiry.

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