2011 (3) TMI 850

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.... project developer and allied services. The return was filed declaring total income of Rs. 72,400. The Assessing Officer after examining the relevant issues, made certain additions and completed the assessment at an income of Rs. 1,05,970 vide order dated 8-4-2008 passed under section 143(3) of the Act. Subsequently, the ld. CIT in exercise of his powers under section 263 of the Act observed that the Assessing Officer while completing the assessment has not obtained and verified the details of payments received from M/s Aga Khan Foundation (India) in respect of various projects and payment of the same, project-wise to independent contractors. He was of the view that the Assessing Officer has completed the assessment without making necessary....

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....passed under section 263 of the Act. 6. We have carefully considered the submissions of the rival parties and perused the material available on record. We find that the ld. CIT while examining the record in exercise of his power under section 263 issued notice under section 263(1) by observing that "I was of the opinion that the Assessing Officer has completed the assessment without making necessary and adequate enquiries". We further find that the ld. CIT after considering the assessee's explanation has held that "the Assessing Officer has completed the assessment without making necessary and adequate enquiries" and set aside the assessment with certain directions to the Assessing Officer. 7. In Jewel of India v. Asstt. CIT [2010] 32....

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....ion 263 of the Income-tax Act, 1961, it would be clear that no finding is recorded by the revisional authority that the order is prejudicial to the interests of the revenue. The tenor of the aforesaid paragraphs only lead to the conclusion that the order was found to be erroneous by the revisional authority, however, nowhere the finding is recorded that the impugned order passed by the Assessing Officer is prejudicial to the interest of the revenue." It has been held (page 95) :- "In the absence of a positive finding that the order was not in the interests of the revenue, it was not open for the revisional authority to assume jurisdiction. In this view of the matter, the impugned order invoking under section 263 of the Income-tax Act ....