Per Shri P.L Mohansingh, Judicial Member - This appeal of the assessee relates to the assessment year 1978-79 and arises out of the order of the Commissioner passed under section 263 of the Income-tax Act, 1961 ('the Act'). The assessee contests the appeal on the ground that on the facts and in the circumstances of the case the Commissioner erred in invok-ing the provisions of section 263.

2. The assessee has filed the return for the assessment year 1978-79 dec-laring a net loss of Rs. 3,00,720 which did not bear the signature of any of the partners competent to sign the same. The ITO has, however, comple- ted the assessment on 31-3-1981 determining the loss at Rs. 2,94,653.

3. The Commissioner on a perusal of the case records came to the con-clusion that the order passed by the ITO is erroneous and prejudicial to the interests of the revenue as according to him the aforesaid assessment was made on the basis of an invalid return. He, therefore, issued a notice to the assessee on 7-2-1983 under section 263(1). The learned counsel for the assessee attended and filed written submissions on 5-3-1983. The asses-see's counsel made the following contentions:

(i)That the failure to sign