TaxTMI 
TaxTMI 
2013 (6) TMI 530
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....operly. 2. That the impugned order as passed u/s 263 of the I.T. Act being illegal deserves to be cancelled." 2. Brief fats are: The assessee is a charitable Society, registered u/s 12A of the I.T. Act and runs Sanskriti School, at Chankya Puri, New Delhi. Assessment order for assessment year 2007-08 was passed on 4-9-2009 by allowing exemption u/s 11, assessing the income at Nil and refusing to carry over the loss declared by the assessee at Rs. 5,27,39,780/-. DIT(E) thereafter issued a notice u/s 263 dated 12-3-2012 alleging that the assessment in question was erroneous and prejudicial to the interests of revenue. Assessee filed reply and explanation in this behalf and attended the proceedings. DIT(E), however, held that assessment order was erroneous and prejudicial to the interests of revenue on following counts: (a) The various receipts recovered by the assessee were contractual receipts/business receipts and therefore, section 11 (4A) was applicable for which the Appellant had to maintain separate account books, which was not complied. Further, TDS certificate issued by ONGC showed that its payment of Rs.14,90,000/- was a payment to assessee as a contractor and was not a g....
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....ntractual payment. (v) Similarly, the payments received from the other parties mentioned in the impugned order u/s 263 at page 3-4 represented advertisement receipts which were duly published in the souvenir 'khazana' brought out by the school produced before CIT(A) and is placed on P.B. (vi) Section 11 (4A) of the I.T. Act as invoked by the Ld. DIT(E) has no application to the facts of Appellant's case because it did not carryon any business. Even if it is assumed, though not admitted, that the Ld. DIT(E) is correct in assuming that the Appellant had carried on business even then the Appellant having maintained proper books of accounts for the aforesaid receipts, section 11 (4A) stood complied with coupled with the fact that the same was incidental to the attainment of the objective of the Assessee Society and not main activity. (vii) As regards other receipts, the same represented receipts for advertisement and souvenir except receipt from Mrs. Ramneeka Lobo Rs.99,871/- which represented expenses in order to meet its expenses towards electricity, water, housekeeping, security etc. for the dance classes conducted by Mrs. Lobo. Similarly, receipts of Rs.1,05,000/- from Tata Cons....
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....ssee society has been assessed to income-tax since last so many years on the same pattern. It is mentioned that for subsequent year 2008-09the DIT(E) cancelled the registration already granted to the assessee u/s 12A of the I.T. Act alleging contravention of the provisions. The dispute reached to the stage of ITAT which vide its order dated 8-2-2013 restored the registration u/s 12A by following observations: "6.3. There is sufficient evidence available on record which is uncontested that the objects of the society are charitable in nature and a finding to the said effect has been given in the impugned order itself. Regarding the shortfall in the requisite no. of students belonging to the EWS category students in the facts as they stand no evidence of non-compliance has been brought to our notice either in the arguments or in the impugned order. The reasons consistently advanced for the situation in regard to locational aspect in the face of the evidence to the contrary have to be accepted as where there is no alleged violation of any of the requirements either of the Urban Ministry or of the Directorate of Education the authorities under the Income tax Act cannot be said to presu....
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....ng note about any voucher or information being not produced before the auditors. Similarly, assessing officer has no where pointed out that assessee did not file any document or explanation. In these circumstances, an assessee who is assessed since last couple of decades on the same pattern, it is not necessary for assessing officer to write an elaborate order if he is satisfied about the accounts, record and correctness of assessee's claim. It is usual that where the assessing officer is satisfied about the books of a/c and the compliance of provisions of sections 11 & 12, there is no requirement in the Income-tax Act that he should not write a short order. Besides, the allegation that assessment was framed in a hurried manner is not correct in as much as assessing officer has mentioned about the due appearance of assessee's C.A./authorized representative in the assessment proceedings from time to time. The assessing officer duly applied his mind to the accounts, explanation of the assessee; compliance of provisions of sections 11 & 12 and gave a finding that there is no violation u/s 13. Assessing officer further gave a clear finding that objects and activities of the assessee sq....
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....5). In our considered view, the assessing officer has given findings on all the relevant aspects with further findings about application of mind i.e. having gone through the accounts record and activities in sum and substance. There is no particular proforma which is provided by any provision of the I.T. Act. DIT(E) has taken some adverse view on the short order and the fact that it was completed in one or two hearings. In our considered view these observations cannot be a basis for holding the assessment order as erroneous and prejudicial to the interests of revenue. The assessing officer is a quasi judicial authority and his findings on fact which are in accordance with law, cannot be called erroneous in the eyes of the law. The order may be short or long. Similarly, the assessment is completed in one or more than one hearing is the discretion of the assessing officer and there is no legal bar on that. There is no error in respect of non-consideration of sec. 10(23C)(iiiab) as the assessing officer has only applied section 11 & 12 and held the assessee's case covered thereunder. This course of action is accepted by assessee. Thus, on this count also there is no error in the order....