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3 orders · Page 1 of 1
The Tribunal condoned the delay in filing the appeal before the CIT(A) due to the circumstances surrounding the rectification application and the delayed communication of the order. The appeal was remanded back to the CIT(A) for a decision on merits.
The Tribunal held that the amendment by Finance Act, 2021, is prospective in nature and does not apply retrospectively. Therefore, the disallowance made by the AO and confirmed by the CIT(A) was incorrect.
The Tribunal held that the PCIT had failed to establish that the AO's order was erroneous and prejudicial to the interest of the revenue. The Tribunal found that the AO had made verifications regarding sundry creditors and made an ad-hoc addition based on unverifiable addresses, which was a valid exercise of his discretion. The Tribunal also noted that the PCIT's revision order was passed beyond the period of limitation.