Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (6) TMI 793 - AT - Income TaxRevision u/s 263 - violation of the provisions of section 40A(3) - proceedings initiated on the basis of the audit objections - Held that:- The examination of violation of the provisions of section 40A(3) has been examined by the Assessing Officer on three occasions and he had not found any violation of such provisions. The reply filed by the assessee clearly shows that to manage his business at various places the advances were made to various supervisors engaged working in various locations and these supervisors used to submit the details of material purchased by them and for making payments to labour and each payment was less than ₹ 20,000 and, therefore, in fact, there was no violation of the provisions of section 40A(3). Assessing Officer has already applied his mind and has taken a concise decision of not making addition for violation of the provisions as there were no violation at all and, therefore, the order passed by the Assessing Officer was not erroneous and was not prejudicial to the interests of the Revenue. The proceedings under section 263 were initiated on the basis of the audit objections as is noted by the learned Commissioner in his order. The honourable Punjab and Haryana High Court in the case of CIT v. Sohana Woollen Mills [2006 (9) TMI 157 - PUNJAB AND HARYANA High Court ] wherein held Commissioner of Income-tax not justified in invoking jurisdiction under section 263 on the strength of an audit note - Decided in favour of assessee
|