Tribunal Upholds CIT's Re-evaluation Order Due to AO's Insufficient Inquiry on Plant Investment Deduction Under Sec 32AC.

The case involves a challenge u/s 263 regarding deduction u/s 32AC for investment in new plant or machinery. The Principal CIT ordered a de novo readjudication due to lack of inquiry by the AO. The Appellate Tribunal found no follow-up inquiry by the AO, indicating non-application of mind. The appellant's argument on plant acquisition timing should have been raised before the AO, not at later stages. The CIT rightly set aside the matter for reconsideration due to incorrect application of law and presumption of facts by the AO. The Tribunal dismissed the assessee's appeal, emphasizing the need for proper determination of facts before applying the law. The appellant's interpretation of acquisition and installation was deemed legally questionable. .....

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