Section 144-B non-compliance alone cannot support revision under Section 263; connected appeal restored after revision order falls.

Non-compliance with Section 144-B of the Income-tax Act, 1961, by itself did not justify revision under Section 263, as the Tribunal held the Commissioner lacked jurisdiction to set aside the assessment on that ground alone. Once the revision order was annulled, the basis for treating the assessee's connected appeal as infructuous disappeared, and that dismissal could not stand. The connected appeal was therefore restored for disposal according to law, with the revision order annulled and the assessee obtaining partial relief.

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Issues: (i) whether the Commissioner could invoke revisionary powers under Section 263 of the Income-tax Act, 1961 to set aside an assessment made without compliance with Section 144-B of the Income-tax Act, 1961; (ii) whether the dismissal of the assessee's connected appeal as infructuous by the Appellate Assistant Commissioner could survive after the revision order was set aside.

Issue (i): Whether the Commissioner could invoke revisionary powers under Section 263 of the Income-tax Act, 1961 to set aside an assessment made without compliance with Section 144-B of the Income-tax Act, 1961.

Analysis: The assessment had been framed without following the mandatory procedure under Section 144-B. The Tribunal followed its earlier decisions holding that such non-compliance did not justify revision under Section 263, as the Commissioner was not competent to revise the assessment on that footing.

Conclusion: The Commissioner had no jurisdiction to revise the assessment under Section 263 for alleged non-compliance with Section 144-B.

Issue (ii): Whether the dismissal of the assessee's connected appeal as infructuous by the Appellate Assistant Commissioner could survive after the revision order was set aside.

Analysis: Once the revision order was annulled, the basis for treating the connected appeal as infructuous disappeared. The matter therefore required disposal on merits according to law.

Conclusion: The order dismissing the connected appeal as infructuous was set aside and the appeal was restored for disposal according to law.

Final Conclusion: The revision order was annulled, and the connected appeal was revived for fresh adjudication, resulting in partial success for the assessee.

Ratio Decidendi: Non-compliance with Section 144-B of the Income-tax Act, 1961, by itself, does not render the assessment revisable under Section 263 unless the statutory conditions for revision are otherwise satisfied.

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