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2006 (10) TMI 120 - HC - Income TaxPower exercised by Commissioner u/s 263 - erroneous and prejudicial order - Income from hiring of air conditioners to its directors - 'income from business' Or "income from other sources - HELD THAT:- In any event, when there are sufficient materials to support the claim of the assessee to treat the income derived from the hiring of air conditioners as business income for over two decades, the Commissioner has no authority to invoke the revisionary jurisdiction u/s 263 of the Act, merely on the surmise that the order of the Assessing Officer is erroneous or the order is prejudicial to the Revenue, on the ground of change of the lessee. Hence, in our considered opinion, the Tribunal had rightly held that the Commissioner had erroneously exercised the power u/s 263 of the Act. In the instant case, as referred to in the order of the Tribunal, the object clause of the memorandum of association of the assessee/company specifies that the object of the company is to carry on the business of running cinema house and lease out the climate control device and other machineries and as the assessee could not get the no objection certificate for running the cinema house, it was carrying on the business by regularly leasing out the air conditioners. Merely because of the change in the parties to whom the air conditioners were leased, in our considered opinion, that would not be a conclusive premise to change the assessment of the same from the head "Business income" to "Income from other sources". Thus, finding no substantial question of law arises, this appeal is dismissed.
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