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2023 (11) TMI 581 - AT - Income TaxRevision u/s 263 by CIT - inadequate enquiry made by AO - whether at all any enquiry was carried out by the Ld. AO on the allowability of expenses towards Event management, Package Tour, purchase of air tickets etc. ? - HELD THAT:- From the given details more particularly the details of various expenses in tabular form enclosed it is clearly found that the assessee had given the nature of expenditure, the entire details of the client for whom the said expenditure has been incurred; expenditure incurred on the various heads together with the respective amounts thereon. Hence, it is clear that assessee had furnished the client wise income and corresponding expenses incurred thereon client wise, before the Ld. AO. AO after making enquiries of the same and being satisfied with the details furnished by the assessee, concluded that the claim of the assessee to be genuine. Accordingly, he had decided not to make any disallowance of expenses thereon. Even if Explanation-2 is being sought to be invoked by the Ld. PCIT by stating that in the opinion of the Ld. PCIT, the requisite enquiries had not been carried out by the Ld. AO, then it is bounden duty of the Ld. PCIT to atleast state what are the requisite enquiries that are to be carried out by the Ld. AO and where the Ld. AO has failed in his duty. In the instant case, no such recording of facts and no finding thereon is given by the Ld. PCIT in his order with objective reasons. Thus more than adequate enquiries were indeed made by the Ld. AO while completing the assessment and if the Ld. PCIT is of the opinion that the enquiries carried out by the Ld. AO were inadequate, then it is the duty of the Ld. PCIT to conduct an enquiry before proceeding to treat the order of the Ld. AO as erroneous. Thus no hesitation in quashing the revision order passed by the Ld. PCIT u/s 263 - Decided in favour of assessee.
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