ITAT Upholds Section 263 Revision as AO not verified 99% Subcontracting Expenses

Nagabhushanam & Co. Vs ITO (ITAT Hyderabad) ITAT Hyderabad Upholds PCIT’s Section 263 Revision – 99% Subcontracting Expenses Not Verified by AO- GST Statement Exposed Bogus Subcontracts Background Assessee filed ROI (30.10.2018) declaring ₹3.94 Cr income. Flagged under risk management – AO noted ITC claim of ₹1.12 Cr based on invoices from 3 subcontractors (GJS Infratech, Sri Laxmi Constructions, Roll-on Projects) without actual supply. AO reopened u/s 147; reassessment completed on 15.02.2023 without any addition. PCIT invoked s.263 (04.03.2025), holding AO failed to verify gen...