Opportunity to furnish unsecured-loan confirmations is required before reassessment initiation; proceedings require fresh consideration after taxpayer...
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The assessee's role was purely custodial, acting as an agent with ownership of collected funds remaining with State Government. Hence, income could not be taxed in assessee's hands, obviating need for detailed analysis u/s 11. Revenue's contention of commercial nature of activities was rejected based on Supreme Court ruling in Ahmedabad Urban Development Authority. CIT(E)'s direction u/s 263 to verify Section 11 exemption was held unjustified as nature of receipts was already examined by ITAT and no new income sources were identified. Relying on precedents, it was held Section 263 cannot be invoked merely on change of opinion. Accordingly, CIT(E)'s revisional order u/s 263 was quashed and assessee's appeal was allowed.
The assessee's role was purely custodial, acting as an agent with ownership of collected funds remaining with State Government. Hence, income could not be taxed in assessee's hands, obviating need for detailed analysis u/s 11. Revenue's contention of commercial nature of activities was rejected based on Supreme Court ruling in Ahmedabad Urban Development Authority. CIT(E)'s direction u/s 263 to verify Section 11 exemption was held unjustified as nature of receipts was already examined by ITAT and no new income sources were identified. Relying on precedents, it was held Section 263 cannot be invoked merely on change of opinion. Accordingly, CIT(E)'s revisional order u/s 263 was quashed and assessee's appeal was allowed.
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TaxTMI 
TaxTMI 
of 4916 
