After making an enquiry with respect to the claim of deduction made by the assessee u/s 35(2AB), the assessment order was passed u/s. 143(3) of the Act. Subsequently, PCIT issued a show cause notice u/s 263 wherein the assessee furnished detailed explanations. PCIT passed the S. 263 order holding the assessment order as erroneous and prejudicial to the interest of revenue, and set aside the assessment order for fresh assessment. It was held that the PCIT had merely reproduced the exhaustive details submitted by the assessee but did not dwell on the same by giving observations of his examination of the details and data, to point out how and what was erroneous in respect of the claim made u/s 35 of the Act. Further, it was not a case where there was no enquiry at all by the AO as the AO did enquire in to the claim of assessee in respect of S. 35(2AB). Further, PCIT had not carried out any enquiry of his own and has merely set aside the assessment to the file of the AO to re-examine the issue of claim of scientific research expenditure. Therefore, the conclusion arrived at by the Ld. PCIT invoking provisions of S. 263 of the Act on the first issue was not justified. The impugned order u/s 263 of the Act was quashed.  (AY. 2016-17)