Sec. 263 of Income-tax Act, 1961—Revision—Sec. 263 confers power upon the Principal CIT/CIT to call for and examine the records of a proceeding under the Act and revise the order if he considers the same to be erroneous and prejudicial to the interest of the Revenue. The Principal CIT can take recourse to revision under s. 263 where the assessment order is erroneous as well as prejudicial to the interest of Revenue and it is well settled that twin conditions are required to be satisfied simultaneously. The Principal CIT in the present case has purported to act in exercise of power under s. 263 and thereby has sought to dislodge and modify the assessment order of the AO passed under s. 143(3)  and Principal CIT essentially observed that the AO has wrongly allowed the deduction under s. 54B in contravention of the provisions of the Act and without making any requisite inquiry on the factual aspects and the AO has accepted the claim without looking into this aspect which has direct bearing on maintainability of deduction, thus, the Principal CIT, in the circumstances, has rightly remitted the issue back to the file of the AO for requisite verification; action of Principal CIT has shunned prejudice to Revenue without any perceptible prejudice to assessee — Riddhish B. Trivedi vs. CIT. [2020] 203 TTJ 634 (AHD)