Inadequacy of enquiry doesn’t give jurisdiction to CIT to invoke provisions of section 263

PCIT Vs Shivshahi Punarvasan Prakalp Ltd (Bombay High Court) Bombay High Court held that present case is not a case of lack of enquiry, however, it can be a case of inadequate enquiry. Accordingly, inadequacy of enquiry does not give jurisdiction to the CIT to invoke provisions of Section 263 prior to the insertion of Explanation 2. Facts- The assessee had filed its ROI for A.Y. 2006-07 on 11th November, 2006. The case was selected for scrutiny and assessment order dated 28th December, 2011 came to be passed u/s. 143(3) of the Act. On 18th March, 2011, the Department issued a notice u/s. 263 c...