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Section 263 of the Income-tax Act, 1961 - Revision - Of order prejudicial to interest of revenue - Assessment year 2003-04 - Whether where it was discernible from record that Assessing Officer had applied his mind to issue in question, Commissioner could invoke section 263 merely because he had different opinion - Held, no FACTS The assessee filed his return of income which was accepted by the Assessing Officer. The Commissioner, however, noticed that one 'A' had received compensation for the land and transferred 50 per cent of such compensation to the assessee at a sum of Rs. 27 lakhs only, whereas the compensation granted by the Supreme Court in relation to the said land was Rs. 1.82 crores; and that the TDS deducted on the compensation had also been transferred by 'A' in the name of the assessee. The Commissioner concluded that credit of TDS can be transferred mainly to a person who is acting as an agent or representative of the entitled person and such issue having not been examined by the Assessing Officer, his order was erroneous and prejudicial to the interest of revenue and deserved to be set aside. On appeal, the Tribunal, after examining the facts of the case, observed that the Assessing Officer had applied his mind to the relevant material and facts, although such application of mind was not discernible from the assessment order. It, therefore, quashed the order of the Commissioner. On revenue's appeal : HELD The Tribunal had arrived at a conclusive finding that though the assessment order did not patently indicate that the issue in question had been considered by the Assessing Officer, yet the record showed that the Assessing Officer had applied his mind. Once such application of mind was discernible from the record, the proceedings under section 263 would not fell into the area of the Commissioner having a different opinion. The findings of fact arrived at by the Tribunal did not warrant interference. That being the position, the instant case would not be one of "lack of inquiry" and, even if the inquiry was termed as inadequate, following the decision in CIT v. Sunbeam Auto Ltd. [IT Appeal No. 1399 of 2006 decided on 11-9-2009], that would not, by…

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