CIT cannot invoke section 263 if there is no lack of inquiry by AO

CA Sandeep Kanoi The CIT’s sole reason for invoking section 263 jurisdiction alleges lack of verification in respect of 11 share and premium applicants to the tune of Rs. 56 lacs. This has made him to restore the matter back to the Assessing authority for carrying out necessary inquiries with reference to identity and creditworthiness of 11 of these share applicants and genuineness of the share application transactions. We find from the case file that the Assessing Officer issued section 142(1) notice dated 25-05-2011 at page 40 of the paper book. The assessee placed on record necessary...