Section 263 upheld as order directing fresh, detailed inquiry into share application money receipt sustained

SC affirmed HC's decision upholding the CIT's exercise of power under s.263 of the Income Tax Act, holding that the AO had failed to make proper inquiry into receipt of share application money. The CIT set aside the AO's assessment and directed a thorough, detailed inquiry; SC found no reason to interfere and upheld that direction, remitting the matter for fresh inquiry by the AO.

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Issues:
1. Validity of order under Section 263 of the Income Tax Act, 1961 regarding share application money.

The Supreme Court, comprising A. K. Sikri and Ashok Bhushan, JJ., dismissed several Special Leave Petitions (SLPs) after finding that the Commissioner of Income Tax had issued orders under Section 263 of the Income Tax Act, 1961, due to inadequate inquiry by the Assessing Officer regarding the receipt of share application money by the assessee(s). The Commissioner had set aside the Assessing Officer's order and directed a more detailed inquiry, a decision upheld by the High Court. The Supreme Court declined to interfere with the High Court's order, affirming the Commissioner's directive for a thorough investigation. The Court concluded that there was no justification for intervention in the High Court's decision, leading to the dismissal of the Special Leave Petitions and disposal of any pending applications accordingly.

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