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Section 263 of the Income-tax Act, 1961 - Revision - Of orders prejudicial to interests of revenue - Assessment years 1976-77 to 1980-81 - Assessee showed an investment of Rs. 1,66,860 in construction of house - Income Tax Officer valued property on basis of report submitted by Income Tax Inspector at Rs. 1,87,660 and difference thereof was added towards income of assessee - Commissioner, while considering report of Valuation Officer under wealth-tax proceedings wherein value of investment in property of assessee was determined at Rs. 6 lakhs, initiated proceedings under section 263 - Tribunal, however, held that under section 263(1), Assessing Officer had to examine record as it stood at time when assessment order was passed by ITO and not record as it stood at time of examination by Commissioner and since report of Valuation Officer was not in existence at time when ITO had passed assessment order in question, it could not and did not form part of record on which order of ITO was based - Whether Tribunal was justified in limiting record which was available before ITO at time of assessment - Held, no CASE REFERRED TO CIT v. Shree Manjunathesware Packing Products & Camphor Works [1998] 231 ITR 53/ 96 Taxman 1 (SC) [Para 5]. A.N. Mahajan for the Applicant. Abhinav Upadhaya for the Respondent. ORDER R.K. Agrawal, J. - The Income Tax Appellate Tribunal, Delhi has referred the following questions of law under section 256(1) of the Income-tax Act, 1961 ('the Act') for opinion to this Court : "1. Whether the Tribunal was correct in holding that the report of the Valuation Officer was not part of the record for the purposes of action under section 263 of the Income-tax Act, 1961? 2. Whether on the facts and in the circumstances of the case, the learned Tribunal was legally correct in cancelling the CIT's order dated 12-4-1982 under section 263(1) of the Income-tax Act, 1961 holding it to be without jurisdiction and invalid?" 2. Briefly stated, the facts giving rise to the present reference are as follows: The respondent-assessee is an individual. The reference relates to the assessment years 1976-77 to 1980-81. The respondent-assessee had purchased an old house…

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