2003 (3) TMI 769

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....a Pandian, J. 1. The question referred to us is as follows : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the order under Section 263 passed by the CIT?" The assessment year is 1986-87. 2. In respect of the assessment proceedings for the above assessment year, the assessee declared the cost of construction of a cinema th....

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....n law, since there was no information relating to any proceedings under the IT Act available before the AO which show that the assessment as framed was erroneous and prejudicial to the Revenue. 3. It was also contended that raising of the loan by the assessee from Jayalakshmi Leasing Company was not part of the proceedings under the IT Act and the same is extraneous to the assessment proceeding....

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....h assessment, if he considers that the order passed by the AO is erroneous and prejudicial to the interests of the Revenue. 6. By the Finance Act, 1988, an Explanation was substituted w.e.f. 1st June, 1988, to Section 263 of the Act. The Explanation was further amended by the Finance Act, 1989, and the definition of the term "record" was explained. It has been provided in the Explanation that "....