https://www.taxtmi.com/caselaws?id=754669 ITAT Hyderabad remanded the matter back to AO for fresh examination regarding excess receipts from contract works. The tribunal found that merely granting sub-contracts without corresponding development activities cannot legalize payments made under running bills. Revenue authorities failed to examine contract details and government payments related to work stages. AO directed to seek assistance from state government development agencies and enforcement bodies to verify contract terms, execution, performance, and whether funds meant for development were diverted to other business activities. The tribunal emphasized need for proper mechanisms to prevent fund siphoning by contractors. Addition towards short-term capital gains also remanded for consistency. en-us Thu, 22 Feb 2024 00:00:00 +0530 Fri, 28 Jun 2024 09:34:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=754669 ITAT Hyderabad remanded the matter back to AO for fresh examination regarding excess receipts from contract works. The tribunal found that merely granting sub-contracts without corresponding development activities cannot legalize payments made under running bills. Revenue authorities failed to examine contract details and government payments related to work stages. AO directed to seek assistance from state government development agencies and enforcement bodies to verify contract terms, execution, performance, and whether funds meant for development were diverted to other business activities. The tribunal emphasized need for proper mechanisms to prevent fund siphoning by contractors. Addition towards short-term capital gains also remanded for consistency. Case-Laws Income Tax Thu, 22 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=754669