TaxTMI 
TaxTMI 
2026 (5) TMI 673
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....n 263 of the Income-tax Act, 1961 [hereinafter referred to as "the Act"], for the Assessment Year (AY) 2021-22. 2. The assessee has raised following grounds of appeal :- "1) The ld. PCIT has erred in law and on facts in passing the order u/s. 263 of the Act when the Id. AO has not failed to make the inquiries or verification which should have been made and hence when the order of the Id. AO is not erroneous. 2) The Id. PCIT has erred in law and on facts in passing the order u/s. 263 of the Act when the order of the Id. AO is not prejudicial to the interest of the revenue. 3) The Id. PCIT has erred in law and on facts in assuming jurisdiction u/s. 263 of the Act on the basis of incorrect data reflected on insigh....
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....he Act. The Ld. PCIT also observed that the Assessing Officer had failed to make proper inquiries regarding expenses claimed by the assessee. Accordingly, the assessment order was set aside with a direction to frame fresh assessment after proper verification. 4. Aggrieved by the order of the Ld. PCIT, the assessee is now in appeal before the Tribunal. 5. The Ld. AR submitted that the assessee-company carried on the business of acting as a Broker, i.e. commission agent for canvasing financial products (Mutual Funds) and, therefore, there cannot be any question of making substantial purchases from suppliers. It was submitted that the Assessing Officer had issued notices u/s 142(1) and 133(6), called for details and examined the material....
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....e from two parties was a matter on record. The mere fact that the assessment order does not contain elaborate discussion cannot lead to the conclusion that no inquiry was conducted. Therefore, in the present case, it cannot be said that there was complete absence of inquiry. 7.1 The Ld. PCIT has primarily relied upon GST data reflected in the Insight Portal to the unexplained expenditure u/s 69C of the Act. However, no categorical finding has been recorded that the assessee incurred expenditure out of undisclosed sources. The assessee has consistently maintained that it operates as a broker and that the transactions in question relate to client investments. The materials furnished during the revision proceedings, including ledger account....
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....G FINANCIAL YEAR 2019-2020 Sr. No. Gross Receipts as per P & L account / Expenditure FY 2020-2021 (AY 2021-2022) FY 2019-2020 (AY 2020-2021) (Increase) / Decrease during the year Amount (Rs.) % to Gross receipt Amount (Rs.) % to Gross receipt (A) Gross receipts as per P&L account 8,83,20,54,355 7,13,45,96,517 (B) Expenditure Brokerage Exponso 4,97,95,16,183 56.38 4,36,16,27,638 61.13 4.75 2 Total Employee benefit expense 89,15,42,552 10.09 74,41,60,912 10.43 0.34 3 Depreciation 12,35.27,267 1.40 12,05,51,998 1.69 0.29 4 Software support & maintenance expenses 18,99,22,032 2.15 23,62,14,357 3.31 1.16 5 Marketing & business promotion expenses 7,18,54,999 0.81 11,40,84,871 1.60 0.79 6 Rent, rates and taxes 1.35....