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 - Assessment years 1952-53 to 1960-61 - Commissioner concluded that assessments for relevant assessment years was erroneous and prejudicial to interests of revenue inasmuch as assessee had neither resided nor carried on any business from address declared in return and that ITO accepted initial capital, gift received and sale of jewellery, income from business, etc. without any enquiry and evidence whatsoever - After hearing assessee, Commissioner cancelled said assessment orders under section 33B and directed ITO to do fresh assessment - Assessee filed writ petition against order of Commissioner contending that she was denied opportunity of showing cause against grounds and material on which commissioner proceeded for purpose of taking action under section 33B - Division Bench of High Court overruled said contention - Whether since assessee had not in any way suffered from failure of Commissioner to indicate results of enquiries, instant appeal was to be dismissed and decision of High Court was to be affirmed - Held, yes FACTS The Commissioner sent a notice under section 33B to the assessee stating that assessment orders for the assessment years 1952-53 to 1960-61, passed by the ITO were erroneous and prejudicial to the interests of revenue for the reasons, amongst others, that the enquiries revealed that the assessee neither resided nor carried on any business from the address declared in the returns and that the ITO was not justified in accepting the initial capital, the gift received and sale of jewellery, the income from business, etc., without any enquiry or evidence whatsoever. Thereafter, the Commissioner passed an order cancelling the assessment order and directed the ITO to do fresh assessments according to law, after making proper enquiries and investigation in regard to the jurisdiction, carrying on of the business, possession of initial capital, gifts received and the sources of the moneys invested in the name of the assessee. The assessee filed a writ petition praying, inter alia, that…

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