Turnover Mismatch vis-à-vis TCS Data Invites 263: Lack of Enquiry by AO Proves Fatal

Apurva International Vs PCIT (ITAT Surat) Surat ITAT upheld the revisionary action u/s 263, holding that failure of the Assessing Officer to enquire into a glaring mismatch between turnover as per books and turnover as per TCS data renders the assessment order erroneous and prejudicial to the interest of Revenue. The Assessee’s case was subject to search and centralized assessment. Although the Assessee disclosed turnover of ₹28.18 crore in its P&L account, TCS was collected on turnover of ₹35.12 crore, resulting in a difference of ₹9.45 crore, clearly reflected in the tax audit re...