Revisionary power under income-tax law extends to assessments made without proper enquiry and supported by earlier records.

Section 33B of the Indian Income-tax Act, 1922 empowered the Commissioner to revise an assessment if it was erroneous and prejudicial to the interests of revenue, even where the assessment arose from a voluntary return, was accepted without proper enquiry, involved a fictitious address, or was made in undue haste. Earlier assessment records could be used as supporting material to test the correctness of the assessment under revision, although the revision related to the later assessment year. On the facts stated, the Commissioner had jurisdiction to cancel the assessment and direct a fresh assessment, so the assessee's challenge failed.

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Issues: Whether the Commissioner could exercise revisionary power under section 33B of the Indian Income-tax Act, 1922 on the footing that the assessment order for 1960-61 was erroneous and prejudicial to the interests of revenue, and whether the earlier assessment records could be looked at for that purpose.

Analysis: Section 33B empowered the Commissioner to call for and examine the record of any proceeding under the Act and to revise an order if it was erroneous in so far as it was prejudicial to the interests of the revenue. The power was not confined to cases where income had been assessed on an undisputedly taxable source, and an assessment could still be both erroneous and prejudicial where it was made on the basis of a voluntary return, accepted without proper enquiry, or where the assessee had furnished a fictitious address or the assessment was made in undue haste. The material from earlier years could be used as supporting material to judge the correctness of the assessment under revision, even though the revision proceeded in relation to the assessment year 1960-61. On the facts found, the Commissioner had jurisdiction to cancel the assessment and direct fresh assessment.

Conclusion: The revision under section 33B was valid, and the assessee's challenge failed.

Ratio Decidendi: An assessment may be revised under section 33B of the Indian Income-tax Act, 1922 if it is made without proper enquiry or on an erroneous factual basis and is thereby prejudicial to the interests of the revenue; supporting material from earlier assessments may be relied upon to determine that question.

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