https://www.taxtmi.com/caselaws?id=791464 Revision under section 263 is sustainable where the assessment order is both erroneous and prejudicial to the interests of the Revenue, particularly when the Assessing Officer fails to make proper inquiry on a material issue. Here, the assessment accepted unsecured loans as non-genuine but did not examine the corresponding disallowance of interest expenditure. That omission showed lack of inquiry on a revenue-impacting matter, so the Principal Commissioner was justified in revising the order. The assessment was set aside for fresh examination of the interest disallowance issue, and the assessee's challenge to jurisdiction failed. en-us Fri, 27 Mar 2026 00:00:00 +0530 Tue, 12 May 2026 08:50:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791464 Revision under section 263 is sustainable where the assessment order is both erroneous and prejudicial to the interests of the Revenue, particularly when the Assessing Officer fails to make proper inquiry on a material issue. Here, the assessment accepted unsecured loans as non-genuine but did not examine the corresponding disallowance of interest expenditure. That omission showed lack of inquiry on a revenue-impacting matter, so the Principal Commissioner was justified in revising the order. The assessment was set aside for fresh examination of the interest disallowance issue, and the assessee's challenge to jurisdiction failed. Case-Laws Income Tax Fri, 27 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791464