Revision under section 263 fails when the foundation addition is deleted and no longer survives in law.

A revision under section 263 could not be sustained where it rested solely on the alleged failure to apply section 115BBE to an addition under section 69A, because that addition had already been deleted in appeal and the deletion affirmed by the Tribunal. Once the foundational addition ceased to exist in law, no live basis remained for revisiting the assessment on the tax-rate issue, and the revisionary power could not be exercised on a non-existent premise. The revisionary order was therefore unsustainable and the assessee succeeded.

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Issues: Whether the revisionary order under section 263 of the Income-tax Act, 1961 could survive when the addition under section 69A, which formed the basis for invoking the higher tax rate under section 115BBE, had already been deleted and that deletion stood affirmed by the Tribunal.

Analysis: The revision was founded only on the premise that the Assessing Officer had not applied the tax rate under section 115BBE to the addition made under section 69A. Once that very addition had been deleted in appellate proceedings and the deletion had been upheld, no subsisting basis remained for revisiting the assessment on the question of tax rate. The revisionary power could not be exercised on a matter that had ceased to exist in law.

Conclusion: The revisionary order was unsustainable and the assessee succeeded.

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