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TMI Blog2016 (4) TMI 461X X X X Extracts X X X X X X X X Extracts X X X X ..... ed. 3. Mr. Mahesh Gehlot, Advocate represented on behalf of the assessee and Mr. S. K. Madhuk, learned CIT DR represented on behalf of the Revenue. 4. It was submitted by the leaned AR that for the relevant assessment year the original return had been filed by the assessee on 14-10-2010. The assessment u/s 143(3) of the IT Act was completed on 31-01-2013. Subsequently, notice u/s 263 of the Act was issued on the assessee on 28- 03-2014 on the ground that the Assessing Officer had not examined/enquired the details of quantity, rate and date the assessee had given for process to Mahalaxmi Cotton Mill and when it was returned back in the form of printed/ dyed cloth. The second issue was the claim of additional depreciation that on purchase o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT on the issues raised in the show-cause notice before he passed the order u/s 263 of the Act. To this, the learned D.R. submitted that the issuance of the show-cause notice to the assessee and consideration of the details submitted by the assessee in the reply was the enquiry done. He vehemently supported the order of the learned CIT. 5. We have considered the submissions. For proper understanding of the issues raised it would be necessary to extract the provisions of section 263 (1) which is as under:- "Section 263 (1) The Principal Commissioner or the Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer is erroneous in so far as it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that is the case it should be specifically recorded that the facts emanating from the records requires no further enquiry to be made or caused to be made. (5) It is only after all the above that the learned CIT can proceed to pass the order thereon as the circumstances of the case justify including an order enhancing or modifying the assessment or cancelling an assessment order directing a fresh assessment. The provision of Section 263 is substantially a provision of last resort used by the Revenue Authority. It is a provision which has the power unsettled the settled assessment. Such power could not have an uninhibited liberty. It is for this reason that the Legislature in its wisdom has required the 'making or "causing to be made such e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oduced w. e. f. 1st June, 2015 wherein it has been explained that the order passed by the AO shall be deemed to be erroneous in so far as it is prejudicial to the interest of the Revenue if, in the opinion of the Principal Commissioner/Commissioner "the order is passed without making enquiries or verification which should have been made". However, it should be understood that the word used in the said explanation is "opinion" of the Principal Commissioner or Commissioner and such opinion should be in writing or at least discernible from the order of the learned CIT. But, even this explanation would be controlled by the primary section of 263(1) which demands the "making or causing to be made such enquiry as he deems necessary", before he pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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