2004 (6) TMI 30

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....llenge in these petitions filed under articles 226 and 227 of the Constitution of India are show cause notices issued by respondent No. 1 in terms of section 263 of the Income-tax Act, 1961. Mr. P.C. Jain, learned counsel appearing for the petitioners, has assailed the impugned show cause notices on the ground of these being without jurisdiction whereas Mr. Kuthiala, learned counsel appearing for ....

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....e of the aforesaid two conditions is absent, either the order is erroneous, but it is not prejudicial to the interests of the Revenue, or the order is not erroneous but it is prejudicial to the interests of the Revenue, recourse to section 263 cannot be had by the Commissioner of Income-tax. We have very carefully seen the impugned show cause notices and find that in so far as respondent No. 1 ....

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....ection 263 and decides not to revise the order is a matter which will fall within the domain of his consideration, on the merits of the cases. The impugned show cause notices only H contain certain recitals which perhaps formed the basis of forming a tentative or a prima facie opinion enabling him to initiate the proceedings under section 263 of the Act. The recitals in the impugned show cause not....

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....erits of the cases as would be brought out before him both by the petitioners as well as the Revenue. On the basis of the aforesaid observations, therefore, we feel totally disinclined to interfere in the proceedings at this stage, particularly when we know that if at all, on the merits of the cases respondent No. 1 ultimately passes adverse orders against the petitioners, the petitioners have ....