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2022 (4) TMI 177 - ITAT NAGPURRevision u/s 263 by CIT - Unexplained cash advance payment to tax as unexplained expenditure u/s 69C - whether the order passed by the assessing officer u/s 153A r.w.s. 143(3) can be said to be erroneous and prejudicial to the interest of the revenue? - HELD THAT:- We find that, pursuant to incriminating material, certain specific queries were raised by the Ld AO with respect to cash payment to Mr Subbha Rao which were claimed to have been made as advance against labour wages and claimed to have appropriated as expenditure in the immediately succeeding year, however no tangible deprecative evidential material were placed in dislodging the findings of the Ld AO. In-spite of conclusive findings emanated from the incriminating material placed on records, Ld AO merely left the elephant in the room unattended and framed the assessment losing the sight to bring such cash advance payment to tax as an unexplained expenditure u/s 69C of the Act, this is nothing but a clear, apparent grievous error vis-à-vis incorrect computation on the part of Ld AO, which undoubtedly falls within the sweep of section 263(1) of the Act, and such a case does finds a place within the ration laid by the Hon’ble lordship in a celebrated case of Malabar Industrial Co Ltd. [2000 (2) TMI 10 - SUPREME COURT] PCIT during the revisionary proceedings made a categorical findings that, the Ld AO after conducting the necessary inquiry in the light of evidential material constituting incriminating seized material, reached the conclusion however has lost the sight while passing the impugned order of assessment without figuring the impugned advance cash payment as unexplained expenditure u/s 69C hence in our considered opinion the conclusion drawn by the Ld PCIT is irresistible. The action of Ld PCIT is perfectly sustainable in law, to the effect holding the order of assessment as erroneous & prejudicial to the interest of revenue - Assessee appeal dismissed.
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