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Section 263 of the Income-tax Act, 1961 - Revision - Of order prejudicial to interest of revenue  Assessment order cannot be treated as erroneous on ground that assessee had not filed tax audit report [A.Y. 2001-02] The assessee had entered into contracts with ONGC and Cairn Energy India Pvt. Ltd. They made the payment to the assessee in foreign currency in Perth, viz., Western Australia. The assessee was assessed to tax at Dehradun. The Assessing Officer did not tax the assessee as on the scrutiny of the books of account he found that there was no profit and gain, rather the company had suffered loss. The Commissioner, however, acting under section 263 revised the order the Assessing Officer on the ground that the books of account were not duly audited by the Indian chartered accountant as required under section 44AB and it was not explained to the Assessing Officer properly. The Tribunal allowed the assessee's appeal. Held that the assessee had maintained vouchers, etc., which would have enabled the Assessing Officer to compute income as per the provisions of the Act. The said vouchers, etc., were also produced before the Assessing Officer and the same were also examined by the Assessing Officer. It was not in dispute that along with the return, the assessee filed the audit report in the prescribed form signed by the CA. the Tribunal also noticed that Tribunal in the case of Saipem U. K. Ltd. NRC v. CIT, Dehradun [I.T.A. No. 853 (Delhi) of 2005] had held that for non-filing of tax audit report, penalty under section 271B can be imposed but the assessment order cannot be treated as erroneous. No material could be brought on record by the Revenue to show that the Assessing Officer had passed the assessment order, in the case of the assessee without proper application of his mind. Holding so the Tribunal had set aside the order under section 263. This factual finding had not been disputed by brining any document on record in this revision. Therefore, the matter stood concluded by the finding of the fact. Therefore, in the facts and circumstances, no substantial question of law arose from the Tribunal's order setting aside the order under section 263. Arvind…

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