1980 (12) TMI 97

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....3 of the IT Act, 1961. the facts are that two assessments were completed by the ito on the assessee on 27th Sept., 1977 as follows: S. No. Accounting Period 1 21-10-1973 to 20-07-1974 2 21-07-1974 to 13-11-1974 the assessee firm was constituted by seven partners being styled as m/s udairam badrinarain & co. as per the deed dt. 2nd Nov., 1970. two of the partners, namely, shri ....

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....v., 1974. the cit exercised jurisdiction under s. 263 of the IT Act, 1961 as in his opinion, order of the ito was erroneous, in so far that was prejudicial to the interests of revenue. he was of the view that on the death of shri udairam, there was only a change of constitution and the firm was not dissolved and, therefore, a single assessment should have been made by the ito for the full period. ....

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....ion on the death of one of the partners when the same business was being carried on by the remaining partners. the assessee, inter alia, relied on the decision of andhra pradesh high court in the case of vinayaka cinema (1977) CTR (AP) 212 : (1977) 110 ITR 468 (AP). this authority fully supports the contention of the assessee. the admitted facts before us are that under the partnership deed dt. 1s....

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....ether it is prejudicial to the interests of revenue. for exercising jurisdiction under s. 263, an order of the ito should not only be erroneous but that should also be prejudicial to the interests of revenue. these are the two concomitant conditions of s. 263 and both should be established together. if one of them is not fulfilled, then no valid jurisdiction can be exercised by the cit under s. 26....