Mechanical Acceptance of Return: ITAT Upholds Section Revision in Liquor Trader’s Case

Tansingh Vs PCIT (TAT Raipur) AO’s Mechanical Acceptance of Return Leads to Revision- Assessment Accepted Without Inquiry – Tribunal Upholds Pr.CIT’s Revision u/s 263 on Liquor Trader’s Case Assessee, engaged in liquor trading, filed a return declaring income of ₹19.10 lakh in response to notice u/s 148. AO accepted the returned income in the reassessment order u/s 147/144B without conducting any detailed verification. Later, based on an audit objection citing CIT v. Mekala Bal Reddy (AP HC), it was noted that liquor business profits should be estimated at 5% of turnover. With turnov...