2024 (2) TMI 706 - SCH - Income Tax

Validity of Revision u/s 263 set aside by HC - as per CIT Large other expenses claimed in profit and loss account, Payments made to related parties u/s 40(A)(2)(b), Current liabilities, Payments made to the contractors and Payment made towards stamp duty - as decided by HC 2023 (3) TMI 673 - DELHI HIGH COURT for the PCIT to exercise jurisdiction under Section 263 of the Act, twin conditions have to be fulfilled, that is, not only should the order be erroneous, but it should also be prejudicial to the interest of the revenue. Clearly, some expenses which were deleted, their reversal would cause prejudice to the revenue. However, in this case, to our minds, the first condition was not fulfilled, which is that the order was erroneous, as has been categorized by the PCIT. HELD THAT - Having regard to the facts of the present case, we are not inclined to interfere in the matter. Special leave petition is hence, dismissed.

Summary

The Supreme Court dismissed the special leave petition due to a 250-day delay in filing, which was condoned. No interference in the matter was made. Pending applications were disposed of.