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TMI Blog2013 (10) TMI 227X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer takes one view or accepts the assessee’s stand, the order is not erroneous, unless the order is not sustainable in law. Thus in such cases, Commissioner is not powerless. After hearing the assessee, he can hold that the finding of the Assessing Officer is erroneous. In rare cases the inadequate inquiry per se can be treated as erroneous, but this must be indicated and stated by the Commissioner in clear and lucid term by pointing out the relevant facts – In the present case, statutory requirement is not met – Decided against the Revenue. - ITA 410/2013 - - - Dated:- 13-9-2013 - Sanjiv Khanna And Sanjeev Sachdeva,JJ. For the Petitioner : Mr. Kamal Sawhney, Sr. Standing Counsel. ORDER We have heard the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring on 03.05.2010 Sh. Vinod Gupta, AR of the assessee appeared and submitted that the profit resulted because of sale of past investment so the same was rightly shown as capital gains and not business income. It was further submitted that for looking at the nature of transaction its frequency etc it could not be construe as business income. In support of the above contention, certain judicial pronouncements were relied upon and it was further submitted that in the earlier year the assessee company had account he (sic) shares as investment in its account and, not as stock in trade. Secondly, the assessee had earned the divided got bonus shares on the investment held. It was argued that the same would prove that the associated income was rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... law?. He further records that there was lack of enquiry and investigation by the Assessing Officer. In other words, investigation or inquiry was carried out by the Assessing Officer at the time of original assessment. The Commissioner has accepted that this is not a case of no inquiry or investigation but it could be a case of an erroneous decision. Power under Section 263A can be invoked when twin conditions are satisfied i.e. when order passed by the Assessing Officer is erroneous and prejudicial to the interest of the Revenue. Satisfaction of jurisdictional conditions by the Commissioner is imperative and obligatory to sustain an order under Section 263 of the Act. It has been repeatedly held that an erroneous order means one which is co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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