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Section 263 of the Income-tax Act, 1961 - Revision - Of order prejudicial to interest of revenue Where from order of Assessing Officer, it was clear that for want of time, Assessing Officer had done only a semblance of enquiry and, that too, in very slipshod manner and Assessing Officer had accepted version of assessee without proper enquiry, as a result of which substantial amount of taxable income was not brought to tax, Commissioner rightly held assessment order as erroneous and prejudicial to interest of revenue The assessee was in the business of purchase of agricultural land and sale of developed residential plot. The assessee filed the return showing Rs. 9,982 as the total income. After scrutiny, notice under section 143(2), read with section 142(1), was issued to the assessee. In response, the Authorised Representative appeared along with documents. The Assessing Officer framed the assessment order on 28-3-2002 holding a sum of Rs. 5,90,290 as taxable income in the hands of the assessee. The Commissioner, however, set aside the assessment order. Held that from the order of the Assessing Officer, it was clear that for want of time, the Assessing Officer had done only a semblance of enquiry and, that too, in very slipshod manner, as was clear from the post script in the order and the Assessing Officer had accepted the version of the assessee without proper enquiry as a result of which substantial amount of taxable income was not brought to tax. In such a case assessment order would be erroneous and prejudicial to the interest of the revenue because law enjoins upon the Assessing Officer to make assessment order bringing all taxable income to tax. The enquiry held in a perfunctory manner could not be said to be a proper enquiry before passing the assessment order. That could not be a ground to shut out the jurisdiction of the Commissioner. Thus, the order of the Commissioner under section 263 was to be upheld. JUDGMENT 1. S. K. Seth J.-This order shall also govern the disposal of connected I. T. A. No. 64 of 2006 and I. T. A. No. 52 of 2006 as all of them are directed against the composite and common order passed by the Tribunal involve a common question…

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