JUDGMENT

A.K. Sikri, J.

1. This appeal was admitted on the following question of law:

"Whether Commissioner of Income Tax correctly assumed jurisdiction under Section 263 in revising the assessment order under Section 143(3) of the Income Tax Act, 1961?"

2. In order to appreciate as to under what circumstances, the question of law has arisen for our consideration, it would be necessary to take stock of the facts as they appear on the records of the case.

3. The respondent (hereinafter referred to as 'the assessee') IS a company engaged in the business of manufacturing certain auto parts and has been supplying the same to various car manufactures in India. It has filed its return for the Assessment Year 2001-02 declaring an income of Rs.9,57,53,430/-. The return was taken up for scrutiny and ultimately assessed under provisions of Section 143(3) of the Income Tax Act (hereinafter referred to as 'the Act'). On that basis, the assessment order was framed on 06.02.2003.

4. The Commissioner of Income Tax-III, New Delhi examined this file and felt that the assessment order was perfunctory and erroneous and it was prejudicial to the interest of the Revenue. According to the CIT no