S.S.Sodhi, J.

1. In the context of the provisions of Section 263 of the Income tax J1 Act, 1961 (hereinafter referred to as "the Act"), does the Commissioner, having formed the opinion that the order of the Income tax Officer is prejudicial to the Revenue, lose his jurisdiction thereunder, if, in the meanwhile, the appeal against the assessment framed by the Income-tax Officer is heard and decided by the Appellate Assistant Commissioner 1 In other words, is Section 263 of the Act rendered inapplicable upon the Appellate Assistant Commissioner deciding the assessees appeal under Section 143(3) of the Act ? Herein lies the controversy raised.

2. The matter here pertains to the assessment year 1975-76. On February 23, 1977, the Income-tax Officer completed the assessment of the assessee, the Punjab State Civil Supplies Corporation Limited, under Section 143(3) of the Act. The assessee appealed against this order which was decided by the Appellate Assistant Commissioner on April 6, 1978, whereby the assessment as framed by the Income-tax Officer was modified. Almost a year later, on February 5, 1979, the Commissioner of Income-tax issued a notice to the assessee under Section 2