Law:

Section:

Section 263, read with section 143(1)(1), of the Income-tax Act, 1961 - Revision - Of orders prejudicial to interest of revenue - Assessment years 1970-71 to 1973-74 - Whether Commissioner acting under section 263(1) could legally set aside an order of assessment made under section 143(1) in pursuance of scheme 'to help new taxpayers in small income groups' evolved by Government - Held, yes FACTS The ITO after necessary enquiries in pursuance of the scheme 'to help the new taxpayers in the small income groups' launched by the Government, passed order under section 143(1). The Commissioner acting under section 263(1) set aside the order passed by the ITO. The Tribunal held that the Commissioner acting under section 263(1) could not legally set aside an order of assessment made under section 143(1) in pursuance of the scheme evolved by the Government, that the Commissioner did not follow the principles of natural justice before passing his order and that his order was based upon mere surmises and conjectures and was, therefore, not valid. On reference: HELD Following the decision in CIT v. Pushpa Devi [1987] 164 ITR 639 (Pat.), CIT v. Rambha Devi[1987] 164 ITR 658 (Pat.) and CIT v. Puspha Devi [1988] 173 ITR 445 (Pat.), it was to be held that Commissioner acting under section 263(1) could legally set aside an order of assessment made under section 143(1) in pursuance of the scheme 'to help the new taxpayers in the small income groups' evolved by the Government. The order of the Tribunal was, therefore, not justified. Note : The decision is in favour of the department. CASE REVIEW CIT v. Pushpa Devi [1987] 164 ITR 639 (Pat.), CIT v. Rambha Devi [1987] 164 ITR 658 (Pat.) andCIT v. Pushpa Devi [1988] 173 ITR 445 (Pat.) followed and relied upon. CASES REFERRED TO CIT v. Pushpa Devi [1987] 164 ITR 639 (Pat.), CIT v. Rambha Devi [1987] 164 ITR 658 (Pat.) CITv. Pushpa Devi [1988] 173 ITR 445 (Pat.). B.P. Rajgarhia and S.K. Sharan for the Applicant. JUDGMENT These are four references in relation to assessment years 1970-71, 1971-72, 1972-73 and 1973-74. In these references, the following questions have been referred to us for our opinion : "1. Whether, on the facts and…

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