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TMI Blog2024 (1) TMI 1331X X X X Extracts X X X X X X X X Extracts X X X X ..... rned Representatives of both sides at length and case- records perused. 3. Brief facts leading to present appeal are such that the assessee- individual filed her return of income of AY 2015-16 declaring a total income of Rs. 36,17,360/- from house property, capital gain and other sources, which was assessed by AO u/s 143(3) of the Act at a total income of Rs. 42,17,604/- after making certain disallowance/addition. Subsequently, Ld. PCIT examined the record of assessment-proceeding and viewed that the assessment-order passed by AO is erroneous in so far it is prejudicial to the interest of revenue which attracts revisionary-jurisdiction u/s 263. Accordingly, he passed revision-order which is impugned in present appeal. The precise reason of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and unambiguous which prescribes thus: "The Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or 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 ......" Therefore, to invoke action u/s 263, not only the PCIT has to himself call for and examine the record of proceeding conducted by AO but also himself consider that the assessment-order passed by AO is erroneous-cum- prejudicial to the interest of revenue. But in the present case, this exercise done by AO. Therefore, the revisionary-action suffers from a serious jurisdictional deficit, consequently the revision-order is liable to be quashed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment." 4. Sub-section (1) of section 263 of the Act is an enabling provision which confers jurisdiction on the CIT to revise an assessment order which he considers erroneous and prejudicial to the interests of revenue. The process of revision 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 si ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record of the assessment proceedings and thereafter considering the assessment order erroneous and prejudicial to the interests of the revenue. The AO recommending a revision to the CIT has no statutory sanction and is a course of action unknown to the law. If AO, after passing an assessment order, finds something amiss in it to the detriment of the Revenue, he has ample 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 latt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons prescribed in section 263 are not fulfilled. We have gone through the decision of ITAT, Pune in Alfa Laval Lund AB (supra) and find that the said decision quashing the revision has been rendered on exactly same set of facts as involved in present appeal of assessee. Although Ld. DR for the revenue has dutifully made certain arguments as noted in foregoing paragraph but neither been able to rebut the arguments made by Ld. AR nor the applicability of the decision of ITAT, Pune on facts or in law. Therefore, respectfully following the said decision, we are inclined to hold that the present case is having a jurisdictional deficit resulting into vitiating the impugned order. Therefore, we quash the impugned order on legality aspect itself an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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