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2024 (3) TMI 519 - ITAT VISAKHAPATNAMRevision u/s 263 - Bogus expenditure towards sub-contract payments made to persons who were previously employed in the assessee’s company as supervisors / garage in-charge for monthly salaries - as per CIT no inquiries or verification regarding genuineness of subcontractors made by AO thus making order passed u/s 143(3) erroneous nor prejudicial to the interest of the revenue - HELD THAT:- It is an admitted fact that the AO has not examined the payments made to the sub contractors during the assessment proceedings. PCIT observed that the details of the sub-contracts given by the assessee company have not been called for by the AO to verify the genuineness of the sub-contractors and the claims of the assessee in this regard were accepted by the AO in a perfunctory manner without any inquiry or verification. Therefore, we have no hesitation to come to a conclusion that the Ld.PCIT has rightly initiated the proceedings u/s 263, saying that the assessment order passed by the AO is erroneous and prejudicial to the interest of the revenue. Appeal of the assessee is dismissed.
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