1993 (9) TMI 69

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....Inspecting Assistant Commissioner under section 144B, becomes the order of the latter and, subsequently, ceases to be reviewable by the Commissioner under section 263 of the Act ?" The assessee is an individual. The assessment year involved in this reference is 1973-74. The assessment of the assessee for this assessment year was completed by the Income-tax Officer on September 8, 1976, under section 143(3) read with section 144B of the Income-tax Act, 1961 ("the Act"). However, the Commissioner of Income-tax, on perusal of the record of the assessment proceedings of the assessee for the above assessment year, noticed that in computing the income of the assessee, the Income tax Officer had wrongly allowed deduction of a sum of Rs. 65,000. H....

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....y the Tribunal. Hence this reference at the instance of the Revenue. We have heard learned counsel for the parties. Section 263 of the Act empowers the Commissioner to call for and examine the records of any proceeding under the Act and if he considers that any order passed therein by the Income-tax Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, he may, after giving the assessee an opportunity of being heard, pass such orders thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. The revisional power of the Commissioner is thus restricted only to orders passed by the Income-tax Officer. T....