Section 263 provide powers to the Commissioner to modify, enhance, cancel or direct fresh assessment in a situation where he considers that the order passed by the tax officer is erroneous and prejudicial to the interests of the revenue.
In (2022) 97ITR (Trib) SN 9 the commissioner invoked his power based on an audit objection alleging that the officer allowed deduction u/s 80P without any inquiry whether interest is earned on deposits made with state financial corporations or nationalised banks.