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TMI Blog2021 (11) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... sanction and is a course of action unknown to the law. If AO, after passing an assessment order, finds something amiss in it to the detriment of the Revenue, he has ample power to either reassess the earlier assessment in terms of section 147 or carry out rectification u/s 154 of the Act. He can t usurp the power of the CIT and recommend a revision. No overlapping of powers of the authorities under the Act can be permitted. As the revision proceedings in this case have triggered with the AO sending a proposal to the ld. CIT and then the latter passing the order u/s 263 of the Act on the basis of such a proposal, we hold that it became a case of jurisdiction deficit resulting into vitiating the impugned order. X X X X Extracts X X X X X X X X Extracts X X X X ..... ed as not chargeable to tax in India within the meaning of Article 12 of India-Sweden Double Taxation Avoidance Agreement. The ld. CIT opined that the receipt from the Indian entity was in the nature of 'Royalty' and not 'Fees for Technical Services'. On being show caused, the assessee urged that the assessment order was not erroneous and prejudicial to the interest of the revenue. In the ultimate analysis, the ld. CIT held the assessment order to be erroneous and prejudicial to the interests of revenue. He, therefore, set aside the same and remitted the matter to the AO for treating the amount received from Indian entity as 'Royalty' chargeable to tax u/s 9(1)(vi) of the Act. Aggrieved thereby, the assessee has come up in appeal before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecord of any proceeding under this Act and considers that any order passed by the AO is erroneous and prejudicial to the interests of the revenue. The twin conditions of - (i) the CIT calling for and examining the record; succeeded by (ii) his considering the assessment order as erroneous etc. - are sine qua non for the exercise of power under this section. The use of the word `and' between the expression `call for and examine the record ….' and the expression `if he considers that any order … is erroneous …' abundantly demonstrates that both these conditions must be cumulatively fulfilled by the CIT and in the same order, that is, the first followed by the second. In other words, the kicking in point for invoking juris ..... X X X X Extracts X X X X X X X X Extracts X X X X
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