https://www.taxtmi.com/caselaws?id=776002 ITAT Mumbai upheld the revision under section 263, finding that the AO committed an error prejudicial to the revenue by failing to verify the genuineness of certain expenditures, including sales and marketing expenses, displacement compensation, lease rent, interest-free loans, and depreciation claims. The AO did not examine applicability of TDS provisions or conduct necessary inquiries. The claimed work-in-progress expenses affecting profits in subsequent years required scrutiny in the current assessment year. The PCIT, after providing opportunity to the assessee, concluded the twin conditions of error and prejudice to revenue were met. Reliance was placed on Explanation 2 to section 263 inserted by Finance Act 2015 and relevant SC decisions. The appeal was dismissed and revision order upheld against the assessee. en-us Wed, 01 Jan 2025 00:00:00 +0530 Mon, 04 Aug 2025 08:28:09 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=776002 ITAT Mumbai upheld the revision under section 263, finding that the AO committed an error prejudicial to the revenue by failing to verify the genuineness of certain expenditures, including sales and marketing expenses, displacement compensation, lease rent, interest-free loans, and depreciation claims. The AO did not examine applicability of TDS provisions or conduct necessary inquiries. The claimed work-in-progress expenses affecting profits in subsequent years required scrutiny in the current assessment year. The PCIT, after providing opportunity to the assessee, concluded the twin conditions of error and prejudice to revenue were met. Reliance was placed on Explanation 2 to section 263 inserted by Finance Act 2015 and relevant SC decisions. The appeal was dismissed and revision order upheld against the assessee. Case-Laws Income Tax Wed, 01 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=776002