TaxTMI 
TaxTMI 
2019 (5) TMI 1158
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....he assessee filed the return on 15/10/2010 declaring 'NIL' income. They have not claimed any exemption of income u/s 11 of the IT Act, though registered u/s 12A of the Act. The assessee, however, claimed some part of its income to the tune of Rs. 8,32,29,451/- as exempt on the principal of mutuality which was denied by the Assessing Officer, who by order dated 18/3/2013 u/s 143(3) of the Act assessed the income at Rs. 12,14,81,569/- by denying the benefit of mutuality and other disallowances on account of donations made. 4. The Commissioner of CIT(E), on a perusal of the assessment record of the assessee, found that the assessee had not incurred the Global Trade Development (GTD) activity expenses in accordance with the aims and objects for which it was established and they not proper enquiry made by the Ld. Assessing Officer on that aspect. Ld.CIT(A), therefore, after hearing the assessee, recorded a finding that the assessment order was erroneous inasmuch as it is a prejudicial to the interest of the Revenue for non-consideration of the allowability of the GTD expenses after due verification. Ld.CIT(A) further observed that though the Assessing Officer had denied the assessee'....
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....clude the promotion of expert of Indian Software & Associated Services and also sponsoring on its own and or arrange through the agencies of the Government visits of delegations of members to countries to promote the interests of the Indian Industry in general and software industry in particular in the areas such as market surveys, exports, joint ventures and collaborations, engineering consultancy studies and all other allied matters. Further, it was submitted before the Ld. CIT(E) that the nature of the GTD expenses as that it is primarily in the nature of the fees etc. being paid to various consulting (Public affair) firms of international repute, retained by the assessee to highlight the value proposition with key policy makers to maintain & enhance the business image of India and establishment of the "India" brand to facilitate opening up of international markets and to provide a level playing ground to India companies competing for international business, with large multinationals in the Indian market place. 8. Further, purpose of such expenditure and the benefits derivable there from is aimed at benefitting L.C.T & Business Process Management (BPM) industry as a whole, wh....
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....ere shown at Rs. 274,56,234/- was declared and it is so inconsonance with the practice for earlier years. 13. In D.G Housing Projects Ltd. (Supra), the Hon'ble Jurisdictional High Court held as under:- "16. Thus, in cases of wrong opinion or finding on merits, the CIT has to come to the conclusion and himself decide that the order is erroneous, by conducting necessary enquiry, if required and necessary, before the order under Section 263 is passed. In such cases, the order of the Assessing Officer will be erroneous because the order passed is not sustainable in law and the said finding must be recorded. CIT cannot remand the matter to the Assessing Officer to decide whether the findings recorded are erroneous. In cases where there is inadequate enquiry but not lack of enquiry, again the CIT must give and record a finding that the order/inquiry made is erroneous. This can happen if an enquiry and verification is conducted by the CIT and he is able to establish and show the error or mistake made by the Assessing Officer, making the order unsustainable in Law. In some cases possibly though rarely, the CIT can also show and establish that the facts on record or inferences d....
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....xercising jurisdictional u/s 263 of the Act, the conclusion that the order of A.O is erroneous and the prejudicial to the interest of the Revenue has to be preceded by minimal enquiry and it is incumbent upon the PCIT to conduct such enquiry where the PCIT was of the view that the A.O did not undertaken any enquiry. It is further held that such an enquiry has to be exercised only by the PCIT. In the case of PCIT Vs. Modi care Ltd. (ITA NO. 759/Del/2016) dated 14/9/2017,the Hon'ble Jurisdictional High Court, after noticing the decisions in the case of D.G Housing Projects Ltd. and also Delhi Airport Metro Express Pvt. Ltd held that the exercise u/s 263 of the Act could not have been outsourced by the CIT(A) to A.O and instead of directing the A.O to verify the correctness of the client of the assessee, the CIT himself should have undertaken an enquiry and give reasons for coming to the conclusion that the assessment order was erroneous and prejudicial to the interest of the revenue. 15. In these circumstances, we are of the considered opinion that the Ld. CIT(A)(E) in this matter did not undertake the exercise of enquiry required to reach the conclusion that the assessment order ....