Section 263 revision barred when the same reassessment issue is already pending in appeal before the appellate authority.

Section 263 revision cannot be invoked where the reassessment order, or the issue forming part of it, is already the subject of a pending appeal before the Commissioner (Appeals). Explanation 1(c) to section 263(1) allows revision only for matters not considered and decided in appeal; it does not permit revision of an issue that is already carried in appellate proceedings. As the same dispute concerning the sale of shares and the reassessment order was pending in appeal, the Principal Commissioner lacked jurisdiction to revise the order, and the revision was quashed.

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Issues: Whether the Principal Commissioner could invoke revisionary jurisdiction under section 263 when the reassessment order was already the subject matter of a pending appeal before the Commissioner (Appeals).

Analysis: Explanation 1(c) to section 263(1) extends the revisionary power to matters not considered and decided in appeal, but it also makes clear that where the very order is under appeal, the Commissioner cannot revise issues that form part of the appellate subject matter. As the assessee's appeal before the Commissioner (Appeals) was pending on the same issue concerning the sale of shares and the reassessment order, the prerequisite for valid invocation of section 263 was not satisfied.

Conclusion: The exercise of jurisdiction under section 263 was invalid and the revision order was quashed.

Final Conclusion: The assessee succeeded because the revisionary order could not stand once the same issue was already carried in appeal before the appellate authority.

Ratio Decidendi: Revision under section 263 is barred to the extent the very matter is the subject of a pending appeal and has not been finally kept outside the appellate adjudication.

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