2021 (12) TMI 512

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....xemptions), Kochi/Revenue is the appellant. M/s. Love in Action Society/assessee is the respondent. The assessee, on 07.10.2013 filed income tax returns for the Assessment Year 2013-14. The assessee is a Charitable Society registered under Section 12AA of the Income Tax Act, 1961 (for short, 'the Act'). On 29.03.2016 the assessment for the subject year, under Section 143(3) was completed. The Commissioner of Income Tax (Exemptions) issued notice dated 02.03.2018 under Section 263 of the Act. The assessee, in spite of receipt of notice, did not file reply or attend the hearing before CIT (Exemptions). The CIT (Exemptions) hence was compelled to proceed ex parte and made the order dated 19.03.2018, relevant portion reads thus: ....

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....he circumstances discernible from the material brought on record by the assessee before it and recorded a finding in conclusive terms that one cannot appreciate the actual loss of revenue from the omissions noted by the CIT (Exemptions). The consideration resulted in setting aside Annexure-B order. 3. For the view we are proposing to take, we avoid getting into detailed discussion on each one of the aspects considered by the Tribunal. Suffice to notice that Section 263 confers revisional powers on the Principal Commissioner/Commissioner, assessment orders which are erroneous, insofar as it is prejudicial to the interest of the Revenue. To begin with, Section 263 provides that at the commencement of proceedings the Commissioner may call a....

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....missioner, then, legitimately it could be argued that an adverse order was passed by the Commissioner dehors the objections of the assessee. But the assessee having become an onlooker or complacent of the ongoing procedure, now raises grounds on the findings recorded by the Commissioner before the Tribunal, on the material placed before the Tribunal. This Court is not observing that the Tribunal ought not to have received material sought to be relied on by the assessee. The material brought on record before the Tribunal and a case for reconsideration under Section 263 is made out, the Tribunal would be doing well by sending the matter back to the Commissioner for consideration and decision afresh, instead of adjudicating on the merits of th....