Sec. 263 of Income Tax Act, 1961 - Revision - The assessee filed its return of income declaring total loss of Rs. 1,12,18,000/-. Subsequently, on the basis of information provided by the Investigation Wing, the case of the assessee was reopened by issue of notice u/s. 148 after recording the reasons. The AO completed the assessment u/s. 148/143(3) accepting the returned loss. CIT issued notice u/s.263 asking the assessee to explain as to why the assessment order should not be revised u/s. 263 of the IT Act since the order passed by the AO is erroneous as well as prejudicial to the interest of the revenue. Assessee submitted its reply but CIT was not satisfied with it and set aside the order of the AO and restored the same to his file for necessary verification and enquiry and complete the assessment denovo. ITAT allowed the appeal of the assessee holding that:- Since for invoking jurisdiction u/s. 263 the twin conditions i.e. order must be erroneous and the order must be prejudicial to the interest of revenue must be fulfilled and since, the order is not erroneous, therefore, the twin conditions are not satisfied. Therefore, the CIT could not have invoked jurisdiction u/s. 263 of the IT Act. —ARIHANT TECHNOLOGY P. LTD. vs. Pr. CIT. [2020] 79 ITR (TRIB) 119 (ITAT-DELHI)