Where the CIT comes to a conclusion that the AO had not conducted enquiries or conducted inadequate enquiries in the original assessment proceedings, it is incumbent on the CIT to conduct the necessary enquiries himself and reach at least a prima facie conclusion that the order is erroneous in so far as it is prejudicial to the interests of the Revenue. Once AO has carried out detailed inquiry and verification of the documents and is satisfied with the net profit shown by the eligible unit as well as the nature of expenses incurred by eligible and non eligible units, then without there being found any discrepancy or defect, such assessment order cannot be set aside. (AY. 2013-14)
Bagrrys India Ltd. v. PCIT (2019) 179 DTR 114 / 199 TTJ 512 (Delhi)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue– CIT to himself conduct enquiries-AO has carried out detailed inquiry and verification of the documents and is satisfied with the net profit shown by the eligible unit as well as the nature of expenses incurred by eligible and non eligible units, then without there being found any discrepancy or defect, such assessment order cannot be set aside. [S. 80IC]