Sec. 263-Revision valid where no enquiry/verification of provisions

Brief of the Case ITAT Mumbai held In the case of M/s Crompton Greaves Ltd. vs. CIT that the AO has not made any enquiry with respect to the claim of deduction of the assessee company with respect to provisions for warranty charges, excise duty, sales tax and liquidity damages amounting to Rs.17.72 crores. The claim was accepted by the AO without any further enquiry, examination or verification as was warranted. Further in audited accounts, the said expenses of Rs.17.72 crores were reflected under the head ‘other Provisions’ were reflecting disclosures of ‘Provisions, Contingent Liabilit...