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2023 (6) TMI 107 - AT - Income TaxRevision u/s 263 - AO has not verified the expenditure claimed by the assessee particularly EDP expenditure and royalty - HELD THAT:- We observe from the financial statements submitted before us that assessee has more or less claimed similar amount in the current Assessment Year compared to previous assessment year. It is brought to our notice that AO has issued various notices u/s. 143(2) and 142(1) and collected the various informations relating to TDS deduction on royalty payments as well as EDP expenses. It is not the case wherein AO has not made any enquiry, however, he has carried out enquiries but he failed to discuss the same in the Assessment Order. AO has carried out certain verification, therefore the provisions of section 263 in particular Explanation 2 cannot be invoked in the present case. Various verifications made by the Assessing Officer on royalty clearly indicates that Assessing Officer has taken one of the possible view. Therefore, in our considered view Ld.Pr.CIT has not clearly brought on record how the assessment passed u/s. 143(3) of the Act is erroneous and prejudicial to the interest of the revenue. - Decided in favour of assessee.
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