Assessee company entered into a transaction to issue share capital at a huge premium and received shares (instead of money) held by the subscribers as investments in other companies. These shares (investments) were clearly shown in the balance sheets as investments and return filings of the subscribing companies in the earlier years. The AO decided to peruse the transaction in detail to decide as to whether addition needs to be made under section 68.  In the assessment proceedings under section 147 the AO raised various queries and also issued notices to subscribing companies under section 133(6).  The AO was satisfied with the responses but sent a proposal to the PCIT to take action under section 263 on various reasons recorded by the AO.  The PCIT without applying any independent mind of his own took action to re-peruse the above transaction as the subscribing companies did not have revenues justifying the amount of investments held by them.  The Tribunal held that the AO had conducted detailed inquiries from the parties directly and there was no need to exercise revisionary jurisdiction under section 263.  The PCIT did not conduct any prima facie enquiry by himself so as to reach a conclusion that the inquiry conducted by the AO was deficient or lacking.  Accordingly the impugned revisionary order was quashed.  (AY.  2010-11)