Revision order quashed

The Bangalore Bench of the Income Tax Appellate Tribunal (ITAT) has quashed a revisionary order passed under Section 263 of the Income-tax Act, holding that the Principal Commissioner cannot invoke revisional jurisdiction on the erroneous assumption that an expenditure had been allowed by the Assessing Officer when, in fact, no such expenditure had even been claimed by the assessee.

The Tribunal held that, in the absence of any demonstrable error in the assessment order, the twin conditions prescribed under Section 263 were not satisfied.