1998 (2) TMI 63

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....ether the Appellate Tribunal was right in holding and had valid materials to hold that the order of the Income-tax Officer was not erroneous and prejudicial to the interests of the Revenue ?" The Commissioner of Income-tax had for that assessment year initated proceedings under section 263 of the Income-tax Act, 1961, as he felt that the order of assessment made by the Income-tax Officer on February 28, 1977, was prejudicial to the Revenue inasmuch as the value of the construction put up by the assessee had been understated and the low valuation offered by the assessee in the view of the Commissioner, had not been sufficiently revised having regard to the size of the construction and the rentals received from that construction. The asses....

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.... in appeal to the Tribunal. The Tribunal while holding that the Commissioner had technical jurisdiction under section 263, nevertheless it was a case of the Commissioner clutching at the jurisdiction, the Tribunal came to that conclusion, on the ground that the earlier order of assessment had not been sought to be revised by the Commissioner and that the revision of the later order was not really called for as that later order had been passed pursuant to a direction given by the Tribunal in an appeal which had been preferred by the assessee. The Tribunal also took the view that the valuation report which was furnished after the order of assessment was made could not properly be taken note of by the Commissioner for the purpose of exercising....

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....the interests of the Revenue. After examining the record and after making or causing to be made an enquiry if he considers the order to be erroneous then he can pass the order thereon as the circumstances of the case justify. Obviously, as a result of the enquiry he may come into possession of new material and he would be entitled to take that new material into account. If the material, which was not available to the Income-tax Officer when he made the assessment could thus be taken into consideration by the Commissioner after holding an enquiry, there is no reason why the material which had already come on record though subsequently to the making of the assessment cannot be taken into consideration by him. Moreover, in view of the clear wo....