Revisionary jurisdiction under section 263 upheld; faceless assessments subject to revision when AO fails requisite enquiries, remitted for fresh asse...
Limited scope of processing under section 143(1): enhancement without show cause is unsustainable; remand for residency, taxation and TDS verification...
Section 40(a)(ia) disallowance applies only to expenditure actually claimed as a deduction in computing business income; where TDS-defaulted amounts remained capitalised in work-in-progress and were not charged to the profit and loss account, no current-year disallowance was warranted. Even under the percentage completion method, the decisive question was whether the expense had entered the year's computation, and the balance had to be adjusted in work-in-progress to avoid later deduction without compliance. The audit report could not override the actual accounting treatment. The Tribunal therefore upheld the CIT(A)'s limited verification approach and dismissed the Revenue's appeal.
Section 40(a)(ia) disallowance applies only to expenditure actually claimed as a deduction in computing business income; where TDS-defaulted amounts remained capitalised in work-in-progress and were not charged to the profit and loss account, no current-year disallowance was warranted. Even under the percentage completion method, the decisive question was whether the expense had entered the year's computation, and the balance had to be adjusted in work-in-progress to avoid later deduction without compliance. The audit report could not override the actual accounting treatment. The Tribunal therefore upheld the CIT(A)'s limited verification approach and dismissed the Revenue's appeal.
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