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TMI Blog2023 (5) TMI 1092X X X X Extracts X X X X X X X X Extracts X X X X ..... rding to which an order passed by the AO is deemed to be erroneous if (a) the order is passed without making inquiries or verification which should have been made; or (b) the order is passed allowing any relief without inquiring into the claim. Being so, we uphold the impugned revision-order Decided against assessee. - ITA No.74/Ind/2022 - - - Dated:- 12-4-2023 - SHRI VIJAY PAL RAO, JUDICIAL MEMBER AND SHRI B.M. BIYANI, ACCOUNTANT MEMBER Assessee by Shri C.H. Padliya, AR Revenue by Shri P.K. Mishra, CIT-DR ORDER Per B.M. Biyani, A.M.: Feeling aggrieved by revision-order dated 08.03.2022 passed by learned Pr. Commissioner of Income-Tax-1, Bhopal [ Ld. PCIT ] u/s 263 of Income-tax Act, 1961 [ the Act ], which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 470/- incurred for increase in authorized capital, and (ii) late filing fee of service-tax of Rs. 500/-, which are capital or penal in nature as reported in Tax Audit Report and hence disallowable, but the Ld. AO has failed to examine these expenses during assessment-proceeding. 4. By the aforesaid show-cause notice, the assessee was asked to explain as to why the assessment-order may not be revised. In response thereto, the assessee did not make any compliance. Ld. PCIT issued another notice dated 16.02.2022 which again remained un-complied with by assessee. 5. Finally, Ld. PCIT concluded that the AO has not carried out the inquiry/verification which he should have done and hence the assessment-order is erroneous-cum-prejudicial to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed financial statements in the form of Balance-Sheet, P L A/c and their Schedules as also the reports of statutory audit and tax audit were duly available before AO and the Ld. AO has scrutinized all these documents. Ld. AR submitted that the impugned twin-expenses noted by Ld. PCIT are duly reflected from these documents and the Ld. AO has allowed deduction of the same after taking note of the same; therefore it is wrong to infer that the AO has not examined the expenses claimed by assessee. Ld. AR further submitted that even otherwise those expenses can t be said to be disallowable; they could be allowable or disallowable depending on case to case basis and therefore the Ld. PCIT has proceeded with a wrong notion that those expenses were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with respect to impugned twin-expenses claimed by assessee. Ld. AR is not able to demonstrate as to how the AO has enquired or verified the impugned claim of expenses made by assessee. Faced with this situation, we have no hesitation in observing that the present case perfectly fits in Explanation 2 to section 263, as re-produced earlier, according to which an order passed by the Assessing Officer is deemed to be erroneous if (a) the order is passed without making inquiries or verification which should have been made; or (b) the order is passed allowing any relief without inquiring into the claim. Being so, we uphold the impugned revision-order and decline to interfere in the matter. The assessee fails in this ground. Ground No. 2: ..... X X X X Extracts X X X X X X X X Extracts X X X X
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