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2015 (7) TMI 988 - AT - Income TaxRevision u/s 263 by CIT(A) - A.O. has completed the assessment without any verification or basis for arriving at the conclusion that the expenditure claimed by the assessee is allowable under sections 37(1) or not hit by section 195 - Held that:- We find merit in the contention of the learned D.R. It is observed that the assessment made by the A.O. under section 143(3) was held to be erroneous as well as prejudicial to the interest of the revenue by the Ld.CIT on the ground that the issue as to whether tax was deductible by the assessee from the payment of commission made to foreign parties, had not been enquired into by the A.O. As rightly contended by the Ld. CIT/DR, the exact nature of services rendered by the foreign agent was vital in this regard, but the A.O. failed to make any enquiry on this aspect. At the time of hearing before us, the Ld. Counsel for the assessee has failed to bring anything on record to show that any enquiry indeed was made by the A.O. on this aspect. In the absence of any such enquiry made by the A.O. on this vital aspect during the course of assessment proceedings, we find ourselves in agreement with the Ld.CIT that assessment made by the A.O. was erroneous as well as prejudicial to the interest of the Revenue calling for revision under section 263. We, therefore, uphold the impugned order passed by the Ld.CIT under section 263 and dismiss the appeal filed by the assessee. - Decided against assessee.
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