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TMI Blog1990 (10) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... at the time he passed the order and cannot be taken into consideration by the Commissioner for the purpose of invoking his jurisdiction under section 263(1) and, in that view, was correct in cancelling the order passed by the Commissioner of Income-tax under section 263(1) ?" Shortly stated, the facts are that the Income-tax Officer, while making the assessment under section 143(3), accepted the value of plant and machinery and electrical installation as reflected in the balance-sheet in toto. The matter of valuation of the aforesaid assets referred to the Valuation Officer, New Delhi, was reported by the Valuation Officer much after the completion of the assessment. The valuation was made by the Valuation Officer at Rs. 16,12,000 as aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in exercising the jurisdiction under section 263(1), can rely on the valuation report which came into the possession of the Incometax Officer subsequent to the completion of the assessment. In Ganga Properties v. ITO [1979] 118 ITR 447 (Cal), the learned single judge of this court held that the word "record" in section 263(1) cannot mean the record as it stands at the time of examination by the Commissioner but it means the record as it stood at the time the order in question was passed by the Income-tax Officer. Therefore, the materials which were not in existence at the time the order was passed but afterwards came into existence cannot form part of the record of the proceedings of the Income-tax Officer at the time he passed the order an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the record of the assessment. In our view, the record contemplated in section 263(1) does not mean only the order of assessment but it comprises all proceedings on which the assessment is based. The Commissioner is entitled, for the purpose of exercising his revisional jurisdiction, to look into the whole evidence. The expression "record" as used in section 263 of the Act is comprehensive enough to include the whole record of evidence on which the original assessment order was based. All proceedings which constitute evidence on which the assessment order is based must normally be regarded as part of the record. So long as the revisional authority does not rely on any extraneous matter, his jurisdiction cannot be questioned. The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessment order appeared to the Commissioner of Income-tax erroneous in so far as it was prejudicial to the interests of the Revenue as it was incomplete without the valuation report which came to the records subsequent to the assessment. In our view, only those materials which form part of the records of the particular assessment year can be looked into by the Commissioner of Income-tax. Section 263 says that the Commissioner of Income-tax may call for the record of any proceeding and such record is not confined only to the assessment order. Where any proceeding is initiated in the course of the assessment proceeding having a relevant and material bearing on the assessment to be made and the result of such proceeding was not avai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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