Commissioner must reach a finding that finding of Assessing Officer was erroneous, not because inquiries were not conducted, but because final finding was wrong and untenable

IT : Commissioner must reach a finding that finding of Assessing Officer was erroneous, not because inquiries were not conducted, but because final finding was wrong and untenable
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[2014] 49 taxmann.com 267 (Delhi)
HIGH COURT OF DELHI
Commissioner of Income-tax-IV
v.
Hotz Industries Ltd.*
SANJIV KHANNA AND V. KAMESWAR RAO, JJ.
IT APPEAL NO. 294 OF 2014
JULY  23, 2014
I. Section 14A, read with section 263, of the Income-tax Act, 1961 - Expenditure incurred in relation to income not chargeable to tax (Quantum of disallowance) - On revision, Commissioner held that disallowance made by Assessing Officer was on lower side - Assessee pointed out that figures applied by Commissioner were incorrect - Without pronouncing whether figures given by assessee were incorrect, Commissioner remanded matter for fresh examination - Whether it was impermissible under section 263 as Commissioner must reach finding that assessment order restricting disallowance under section 14A was erroneous and incorrect - Held, yes [Para 2] [In favour of assessee]
II. Section 263, of the Income-tax Act, 1961 - Revision - Of orders prejudicial to interest of revenue (Conditions precedent) - Whether once inquiries were conducted and a decision was reached by Assessing Officer, it cannot be said that it was a case of no inquiry and, Commissioner must reach a finding that finding of Assessing Officer was erroneous, not because no inquiries were conducted, but because final finding was wrong and untenable - Held, yes [Para 3] [In favour of assessee]
Kamal Sawhney and Sanjay Kumar for the Appellant.