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2024 (5) TMI 948 - ITAT JAIPURRevision u/s 263 by CIT - case of the assessee was taken up for ‘’Limited Scrutiny’’ u/s 143(3) - payments made to the specified person - percentage disallowance on account of salary payments - inadeqaute v/s no inquiry HELD THAT:- It is not the case that the AO had passed the order without conducting inquiries into the issue under consideration and specific details regarding salary to specified persons and allowability of the same was duly asked for and have been submitted by the assessee, which after due verification have been allowed by AO. The entire material and also the order passed for AY 2017-18 was duly available with AO. Also the observation made by Ld. PCIT regarding the salary expenses is based merely on inference drawn for AY 2017-18, which was under totally different situation and also that except AY 2017-18 no other assessment year bears any disallowance in this regard, where assessments were re-opened pursuant to survey proceedings carried out in AY 2017-18. Therefore, a disallowance made in just one year, that too on incorrect footing cannot be made basis for doubting the claim made in current year and duly allowed by AO after due verification. This in our considered opinion renders the revision proceedings invoked by ld. PCIT beyond jurisdiction and against the legal principals laid down through various judicial pronouncements. Thus we found merit in the contention of ld. AR, therefore we quash the order passed by ld. PCIT under section 263 of the Act - Appeal of the assessee is allowed.
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