TARA DEVI AGGARWAL vs COMMISSIONER OF INCOME-TAX, WEST BENGAL,CALCUTTA

The Supreme Court held that under Section 33B of the Income-tax Act, 1922, the Commissioner has the authority to cancel an assessment if it is found to be erroneous and prejudicial to the interests of revenue. The Court ruled that even if an income is not assessable, an assessment made at the request of the assessee can still be deemed erroneous if it affects revenue negatively. The appeal was dismissed, affirming the High Court's decision that the Commissioner acted within his jurisdiction to cancel the assessment and initiate fresh proceedings.