Allowing the appeal of the assessee the Tribunal held that; in order to justify exercise of power vested by Statute u/s 263, it was incumbent upon PCIT to demonstrate that at time of investment, property was not a residential property and in terms of Explanation 2(a), PCIT was required to demonstrate that order passed was without making enquiries or investigation. Issue was enquired into and nowhere in order, PCIT was able to show that order passed either suffered from any error let alone such an error which was prejudicial to interests of Revenue. Issues were enquired into by AO during assessment proceedings. Before AO, assessee’s explanation was offered—Plan and map site was also made available. Nothing was brought out in order to show status of property at time of investment. Accordingly the explanation 2(a) was not attracted and accordingly, order passed by PCIT was quashed. (AY.2012-13)