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2023 (4) TMI 683 - ITAT RAJKOTRevision u/s 263 by CIT - As per CIT unexplained and unjustified expenditure, came within the purview of section 69C and should have been taxed at the special rate provided u/s 115BBE at 60% plus surcharge at 25%, but the AO had subjected the same to tax at the normal rate only - HELD THAT:- As is evident from bare perusal of the order of the AO, disallowance related to expenses incurred by the assessee in relation to subcontractor which were not found to be genuine. Section 69C on the other hand, brings to tax expenses incurred, source of which remain unexplained. Therefore, purview and scope of section 69C is totally different from the disallowance of expenses found to be not genuine. The basic premise with the CIT therefore for finding error in the order of the AO, that the disallowance made by him of contractors’ expense came under the purview of section 69C of the Act is found to be untenable in law. His finding of error, as a consequence whereof, that the same not being subjected to tax at a special rate provided u/s 115BBE of the Act also as a result does not survive. There is, we hold, therefore no error in the order of the AO, as noted by the CIT in his order passed under section 263 of the Act, and the same is accordingly set aside on this count alone. Appeal of the assessee is allowed.
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