https://www.taxtmi.com/caselaws?id=467534 Revision under Section 263 is confined to assessments that are both erroneous and prejudicial to revenue, and it cannot be used merely because the Principal Commissioner considers the Assessing Officer's inquiry insufficient. In this search-related Section 153A assessment, the Assessing Officer had called for a cash/funds flow statement and relied on the assessee's returns and other material to assess the source of funds for loan repayment. Because the record showed application of mind and a reasonable satisfaction on the relevant issue, no clear error or revenue prejudice was demonstrated. The Section 263 invocation was therefore held unsustainable and the assessee's appeal was allowed. en-us Tue, 18 Feb 2025 00:00:00 +0530 Mon, 23 Mar 2026 20:37:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=467534 Revision under Section 263 is confined to assessments that are both erroneous and prejudicial to revenue, and it cannot be used merely because the Principal Commissioner considers the Assessing Officer's inquiry insufficient. In this search-related Section 153A assessment, the Assessing Officer had called for a cash/funds flow statement and relied on the assessee's returns and other material to assess the source of funds for loan repayment. Because the record showed application of mind and a reasonable satisfaction on the relevant issue, no clear error or revenue prejudice was demonstrated. The Section 263 invocation was therefore held unsustainable and the assessee's appeal was allowed. Case-Laws Income Tax Tue, 18 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=467534