Assessee received manufacturing undertakings of three companies through court-approved schemes of demerger. Thereafter, the Commissioner invoked section 263 on the ground that the carry forward of unabsorbed business losses and depreciation was incorrect in terms of section 72A(2), which required amalgamating entities to have been in existence for a minimum of three years prior to amalgamation. Assessee contended that the arrangement was a demerger governed by section 72A(4). However, the Commissioner passed an order remitting the issue to the Assessing Officer for examination. Tribunal set aside said order. On appeal, the Court held that the arrangement sanctioned qua parties was not one of amalgamation as defined under section 2(1B), but one of demerger under section 2(19AA),  even though three entities had been in business for less than three years, however, the same would not be fatal to claim carry forward, since applicable provision was section 72A(4). Therefore, in view of the provisions of section 72A(4), there was no error per se in the order of assessment and the direction under the order of revision amounted to a mere roving enquiry, and the same was  set aside.(AY. 2007-08)