Initiation of revisionary proceeding without any enquiry/ verification is bad in law

Britannia Industries Ltd Vs PCIT (ITAT Kolkata)

Held that revisionary proceedings bad in law as initiated without conducting any enquiry or verification to establish that the assessment order is unsustainable

Facts-

Pr. CIT on checking the assessment records noted that the assessee had claimed a double deduction u/s. 35(1) of Rs. 21,73,61,278 and u/s. 35(2AB) of Rs. 31,18,07,632/-.

The Pr. CIT further observed that the AO had disallowed the excess claim of capital and revenue expenditure for an amount of Rs.1,62,11,632/- u/s. 35(2AB) of the Act which ought to have been disallowed u/s. 35(1) also. Thus, Pr. CIT formed an opinion about the under-assessment of income by Rs.1,00,95,123/- having a tax effect of Rs.34,93,720/-.

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