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2017 (9) TMI 960 - AT - Income TaxRevision u/s 263 - allowable expenditure in connection with the business of the assessee - Held that:- It is not disputed that the entire sum of ₹ 70,52,892/- had been duly paid by the assessee to M/s. Sayan Shipping and Cleaning Agency Pvt. Ltd.. In the reply to the show cause notice by CIT u/s 263 of the Act all the above facts are brought to the notice of CIT and CIT had not disputed the facts as stated by the assessee in such reply. The CIT however cross checked the ledger account statement submitted by M/s. Sayan Shipping and Cleaning Agency Pvt. Ltd. received in response to the notice issued by the AO u/s 133(6) of the Act while concluding the original assessment proceedings with the bill nos as produced by the assessee and found discrepancies in its bills. The order of CIT does not spell out as to what was the discrepancy. It is also not disputed that the CIT had not confronted the assessee with the nature of discrepancy. In the present case as rightly contended by the assessee in the light of the admitted factual position the entire sum of ₹ 70,52,892/- had been duly paid by the assessee to M/s. Sayan Shipping and Cleaning Agency Pvt. Ltd.. There cannot be any loss to the revenue in as much as the entire sum had been paid and was admittedly an allowable expenditure in connection with the business of the assessee. It cannot also be said that order of the AO was erroneous as the nature of error in the order of the AO has not been brought out in the order of the CIT. The CIT in the impugned order has not spelt out as what are the discrepancies between the ledger account statement of M/s. Sayan Shipping and Cleaning Agency Pvt. Ltd. and the bill numbers as furnished by the assessee. Without bringing material on record to show that the order of the AO was erroneous the CIT cannot invoke jurisdiction u/s.263 of the Act. - Decided in favour of assessee.
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