Law:

Section:

Section 263 of the Income-tax Act, 1961 [Corresponding to section 33B of the Indian Income-tax Act, 1922] - Revision - Of orders prejudicial to interest of revenue - Original assessment of assessee was completed by ITO - Subsequently, Commissioner issued a notice on assessee under section 33B by taking a view that no business was carried on by assessee alleged in returns and also ITO was not justified in accepting initial capital, income from business, acquisition and sale of jewellery etc without any enquiry or evidence whatsoever - On petition, Trial Court concluded that said order was bad as it had been mode in violation of principles of natural justice - Whether since Commissioner in taking notice of date of filing returns date of taking cognizance by ITO and in coming to conclusion that there had been interpretation in records had acted on material which were well known to assessee, it could not be said that Commissioner had violated principles of natural justice in relying upon assessment records and in during her own inference on material - Held, yes - Whether since assessee had failed to show any evidence in support of her claims and contentions it could not be said that in setting aside assessment orders in exercise of powers under section 33B, Commissioner had acted in violation of rules of natural justice - Held, yes FACTS The original assessment of the assessee was completed by the ITO. Subsequently, the Commissioner issued a notice on the assessee under section 33B. By taking a view that no business was carried on by assessee alleged in the returns and also the ITO was not justified in accepting the initial capital, the income from business, the acquisition and sale of jewellery, etc., without any enquiry or evidence whatsoever. On petition the Trial Court concluded that the said order was bad as it had been made in violation of the principles of natural justice. On revenue's appeal, the assessee contended that the order of Commissioner had been made in violation of the principles of natural justice that the ITO, "D", had no jurisdiction to deal with the his case, as his jurisdiction over cases of new assessees was confined to those assessees whose…

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