https://www.taxtmi.com/caselaws?id=430189 The tribunal upheld the Principal Commissioner of Income Tax's decision to invoke Section 263 of the Income Tax Act, deeming the Assessing Officer's assessment order erroneous for allowing deductions without verifying commercial activities in the Bio-Pharma division. The tribunal supported disallowing expenses under Section 35(2AB) as the division had not commenced manufacturing. Expenditure was classified as pre-operative due to the lack of revenue generation. The tribunal found the PCIT's application of a relevant precedent appropriate, leading to the dismissal of the appeal and a direction for a fresh assessment. en-us Fri, 14 Oct 2022 00:00:00 +0530 Mon, 14 Nov 2022 09:01:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=430189 The tribunal upheld the Principal Commissioner of Income Tax's decision to invoke Section 263 of the Income Tax Act, deeming the Assessing Officer's assessment order erroneous for allowing deductions without verifying commercial activities in the Bio-Pharma division. The tribunal supported disallowing expenses under Section 35(2AB) as the division had not commenced manufacturing. Expenditure was classified as pre-operative due to the lack of revenue generation. The tribunal found the PCIT's application of a relevant precedent appropriate, leading to the dismissal of the appeal and a direction for a fresh assessment. Case-Laws Income Tax Fri, 14 Oct 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=430189