TMI Blog2023 (4) TMI 683X X X X Extracts X X X X X X X X Extracts X X X X ..... the disallowance of expenses found to be not genuine. The basic premise with the CIT therefore for finding error in the order of the AO, that the disallowance made by him of contractors expense came under the purview of section 69C of the Act is found to be untenable in law. His finding of error, as a consequence whereof, that the same not being subjected to tax at a special rate provided u/s 115BBE of the Act also as a result does not survive. There is, we hold, therefore no error in the order of the AO, as noted by the CIT in his order passed under section 263 of the Act, and the same is accordingly set aside on this count alone. Appeal of the assessee is allowed. - ITA No. 59/RJT/2022 - - - Dated:- 22-3-2023 - SMT. ANNAPURNA GUPT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment proceedings u/s 143(3) of the Act, 3. The learned Principal Commissioner of Income-tax, Rajkot - 1, Rajkot failed to appreciate that the first appeal of the Appellant against addition made in the assessment order on impugned issues were pending before the Commissioner (Appeals) and therefore the order u/s 143(3) could not be revised u/s 263 of the Act. 4. The appellant craves leave to add, amend, alter and withdraw any ground of appeal anytime up to the hearing of this appeal. 3. At the outset itself, the ld.counsel for the assessee pointed out that ld.Pr.CIT assumed jurisdiction under section 263 of the Act to revise order of the AO on noting error in his order to the effect that the addition made by the AO of Rs.29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... E NOTICE NOTICE FOR THE HEARING M/s/Mr/Ms Subject: Notice for Hearing in respect of Revision proceedings u/s 263 of the THE INCOME TAX ACT, 1961 -Assessment Year 2017-18. In this regard, a hearing in the matter is fixed on 24/01/2022 at 11:00 AM. You are requested to attend in person or through an authorized representative to submit your representation, if any alongwith supporting documents/information in support of the issues involved (as mentioned below). If you wish that the Revision proceeding be concluded on the basis of your written submissions/representations filed in this office, on or before the said due date, then your personal attendance is not required. You also have the option to file your submission fro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, physical presence is not required. DAMODAR PRASAD GUPTA PCIT, Rajkot-1 4. The ld.counsel for the assessee contended that ld.Pr.CIT had grossly erred in stating that the disallowance made by the AO was to be treated as unexplained expenditure under section 69C of the Act. He pointed out that expenditure of Rs.29,30,229/- had been disallowed by the AO, finding it to be ingenuine in terms of provisions of section 37(1) of the Act. He contended that section 69C of the Act subjected to tax expenditure, source of which was not explained. Therefore, in the present facts of the case, the expenditure being found to be in-genuine, it was not case of expenditure incurred by the assessee, source of which was unexplained, to be trea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y him is not, in the opinion of the Assessing Officer, satisfactory, the amount covered by such expenditure or part thereof, as the case may be, may be deemed to be the income of the assessee for such financial year : Provided that, notwithstanding anything contained in any other provision of this Act, such unexplained expenditure which is deemed to be the income of the assessee shall not be allowed as a deduction under any head of income. And also provisions of section 37(1) of the Act, as under: 37 (1) Any expenditure (not being expenditure of the nature described in sections 30 to 36 and not being in the nature of capital expenditure or personal expenses of the assessee), laid out or expended wholly and exclusively for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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