https://www.taxtmi.com/caselaws?id=772997 The ITAT Ahmedabad upheld the PCIT's revision order under section 263, finding the FAO's assessment erroneous and prejudicial to revenue interests. The assessee's case was selected for Complete Scrutiny under CASS, requiring examination of all material aspects. The FAO failed to inquire into the allowability of Labour Welfare Cess expenditure disclosed in audited financial statements. The tribunal held that absence of specific inquiry on material claims renders assessment orders erroneous, citing Supreme Court precedent in Malabar Industrial Co. Ltd. and Explanation 2(a) to section 263. The revision jurisdiction was validly exercised due to patent lack of inquiry on material expenditure claims. en-us Thu, 24 Apr 2025 00:00:00 +0530 Tue, 17 Jun 2025 07:57:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772997 The ITAT Ahmedabad upheld the PCIT's revision order under section 263, finding the FAO's assessment erroneous and prejudicial to revenue interests. The assessee's case was selected for Complete Scrutiny under CASS, requiring examination of all material aspects. The FAO failed to inquire into the allowability of Labour Welfare Cess expenditure disclosed in audited financial statements. The tribunal held that absence of specific inquiry on material claims renders assessment orders erroneous, citing Supreme Court precedent in Malabar Industrial Co. Ltd. and Explanation 2(a) to section 263. The revision jurisdiction was validly exercised due to patent lack of inquiry on material expenditure claims. Case-Laws Income Tax Thu, 24 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772997