Section 263 cannot be invoked if assessment order is not erroneous but is prejudicial to Revenue

Smt. Rekha Shekhawat Vs PCIT (ITAT Jaipur) The bench notes that the prerequisite exercise of jurisdiction by the learned Principal CIT under s. 263 of the Act is that the order of the AO is established to be erroneous insofar as it is prejudicial to the interest of the Revenue. The Principal CIT has to be satisfied of twin conditions, namely (i) the order of the AO sought to be revised is erroneous; and (ii) it is prejudicial to the interests of the Revenue. If any one of them is absent i.e., if the assessment order is not erroneous but it is prejudicial to the Revenue, s. 263 cannot be invoke...