Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (1) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (1) TMI 701 - ITAT RAJKOTRevision u/s 263 - AO failed to satisfy Section 69C being unexplained expenditure which may attract higher tax liability as per Section 115BBE - HELD THAT:- It is pertinent to note that the AO has given a detailed finding in respect of unexplained expenses related to Sub-contract and the same has been taken into account after verifying the evidences produced during the assessment proceedings. AO has properly adjudicated the issue and made the addition. Invocation of Section 69C of the Act does not arise in the present case as the source of the expenditure was already explained by the assessee and, therefore, it does not amount to undisclosed expenditure under Section 69C but the same was related to Sub-contract expenses for which the relevant details and the explanation was not accepted by the Assessing Officer. Therefore, invocation of Section 263 of the Act which is revisionary statute cannot be exercised by PCIT as the Assessing Officer has passed just and proper assessment order by taking interest of the Revenue and thus it does not amount to erroneous or prejudicial to the interest of Revenue. Thus, appeal of the assessee is allowed.
|