Dismissing the appeal of the revenue the Court held that the exercise conducted by the Assessing Officer in the scrutiny assessment was examined by the Tribunal which found that due enquiry had been conducted by the Assessing Officer and after perusal of the documents, stock register, etc., the assessment was completed. The Tribunal also reappreciated the factual position and found that the Commissioner while exercising power under section 263 of the Act had not recorded a specific finding that it was a case of no enquiry by the Assessing Officer rather the observation was that there could be a possibility of understatement of the closing stock. Order of Tribunal affirmed. (AY. 2009-10)