Held, that AO did not inquire about the loss on assets disposed of or any expenditure debited in the P & L account. Further, AO. was duty bound to look at the P & L account and disallow expenditure which was not of revenue in nature. Thus, the revision of PCIT was justified. (AY. 2017-18)
Bombay Transport Co-Operative Consumer Society Ltd. v. ITO (2023) 101 ITR 72 (SN) (Mum.)(Trib.)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Failure of AO to inquire loss on disposal of assets/expenditure-A.O. duty bound to disallow expenditure which is not of revenue expenditure in P & L account-Revision Justified.[S. 143(3)]