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TMI Blog2023 (10) TMI 1187X X X X Extracts X X X X X X X X Extracts X X X X ..... sed by learned Pr. Commissioner of Income-Tax-1, Bhopal ["PCIT"] u/s 263 of Income-tax Act, 1961 ["the Act"] and all concerning assessment-year ["AY"] 2015-16, which in turn arise out of respective assessment-orders passed by Assessing Officers ["AO']. Since the assessee-appellants in these appeals are part of the same group and the controversy to be settled is also identical, all four appeals were heard together and being disposed by this single order. 2. Heard the learned Representatives of both sides at length and case-records perused. 3. Briefly stated the facts are such that all of the four assessee-appellants are companies in the nature of "Special Purpose Vehicle" established to undertake the development of highway projects, each o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 14.01.2020; (ii) the proposal for revision was received by PCIT from AO; and (iii) the draft-notice itself was ready with the proposal and put up before PCIT for approval/sign. Then, Ld. AR carried us to Para No. 3 of revision-order and showed that the show-cause notice u/s 263 dated 14.01.2020 was issued by PCIT. Ld. AR submitted that it is very much apparent that it is not the PCIT who has called for and examined the records of assessment-proceeding; it is the AO who has mooted the proposal for revision, prepared draft notice and placed before PCIT for signature. Then, the PCIT issued show-cause notice on 14.01.2020 itself which is exactly the same date on which the proposal was placed before him. Ld. AR strongly contended that these fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous-cum-prejudicial to the interest of revenue. But in the present case, the PCIT has neither called for nor considered; the entire exercise is done by AO. Therefore, the revisionary action suffers from a serious jurisdictional deficit, consequently the revision-order is liable to be quashed. 6. To support the proposition narrated above, Ld. AR placed a strong reliance on decision of ITAT, Pune in Alfa Laval Lund AB Vs. CIT(IT/TP), Pune, ITA No. 1287/Pun/2017, order dated 02.11.2021. In this decision, the Hon'ble ITAT, Pune has considered an exactly same issue, analysed the prescription and requirement of section 263 and finally held that the revision exercise done by PCIT suffered from a jurisdictional deficit. Accordingly, the ITAT quash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n u/s 263 of the Act initiates only when the CIT calls for and examines the record of any proceeding under this Act and considers that any order passed by the AO is erroneous and prejudicial to the interests of the revenue. The twin conditions of - (i) the CIT calling for and examining the record; succeeded by (ii) his considering the assessment order as erroneous etc. - are sine qua non for the exercise of power under this section. The use of the word `and' between the expression `call for and examine the record ...." and the expression `if he considers that any order ... is erroneous ..."abundantly demonstrates that both these conditions must be cumulatively fulfilled by the CIT and in the same order, that is, the first followed by the se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ple power to either reassess the earlier assessment in terms of section 147 or carry out rectification u/s 154 of the Act. He can't usurp the power of the CIT and recommend a revision. No overlapping of powers of the authorities under the Act can be permitted. As the revision proceedings in this case have triggered with the AO sending a proposal to the ld. CIT and then the latter passing the order u/s 263 of the Act on the basis of such a proposal, we hold that it became a case of jurisdiction deficit resulting into vitiating the impugned order. Without going into the merits of the case, we quash the impugned order on this legal issue itself. 6. In the result, the appeal is allowed." 7. With aforesaid submission, Ld. AR prayed this Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X
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