TaxTMI 
TaxTMI 
2022 (7) TMI 257
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....is falls during the Covid period and in view of the relaxation of the Hon'ble Supreme Court, we hold that there is no delay and hence, the appeal of the assessee is hereby admitted for adjudication. 3. The assessee has raised the following grounds of appeal:- 1. The Ld. CIT(Exemption} has erred in law and in facts in issuing notice u/s. 263 of the Act and passing revision order without satisfying the conditions laid down u/s. 263 of the Act and without appreciating that the assessment order was neither erroneous nor prejudicial to the interest of revenue. 2. The Ld. CIT(Exemption) has erred in law and in facts in setting aside the assessment with direction to the Assessing Officer to conduct fresh assessment. 3....
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....come and Expenditure account and Audit Report in Form No.10B declaring total income at Rs. Nil. The activities carried out by the assessee Institution are considered to be charitable in nature within the meaning of Section 2(15) of the Act. The assessee claimed exemption u/s.11 of the Act in the return of income and the same was duly granted by the ld. AO in the assessment proceedings. The ld. AO completed the assessment u/s.143(3) of the Act on 05/06/2017 accepting the nil income of the assessee. During the course of assessment proceedings, the ld. AO obtained various details from the assessee which were duly examined and finally the income of the assessee was determined in the following manner:- Spare Samudaya Nirman Sahayak Computa....
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....uchers or bills to support their claim of the expenses incurred on the objects of the trust. The Assessing officer ought to have conducted verification, at least on test check basis before concluding the assessment in this case, specifically when there was ample time available since the proceedings were concluded in 05.06.2017, while the date of limitation of completion of assessment in this case was 31.12.2017. The next issue is verification of the identities of the foreign donors and foreign receipts received by the trust. Here also, it is seen that neither the FCRA registration nor Form FC3 was submitted during assessment. Only the names of the donors, the country from which donations were received and the amounts have been ment....
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.... 6. In the result, this assessment is set aside with the direction to AO to conduct fresh assessment. 4.2. From the grounds, we find that assessee has challenged the validity of assumption of jurisdiction by the ld. PCIT u/s.263 of the Act as well as the adjudication of the issue on merits. First we deem it fit to address the legal issue on assumption of jurisdiction. We find that assessee had initially filed a letter dated 02/02/2017 before the ld. AO furnishing the primary details of the activities carried out by the assessee together with details of Institution, bank statements, party wise details of foreign contributions received along with copies of Foreign Inward Remittance Certificate (FIRCs) and audited accounts of foreign contr....
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....given; details of option exercised in earlier years u/s.11(1)(a) of the Act for utilization of income during the year under consideration and party wise details of foreign donations received along with copy of FIRCs and audited foreign contribution amounts together with its utilization thereon. The details of foreign contributions received together with audit certificate and audited accounts are enclosed from pages 52-64 of the paper book filed before us. We also find that form FC3 being the annual return to be filed before the Ministry of Home Affairs under FCRA Act had been changed to form FC4 and the assessee had duly furnished form FC4 before the ld. AO which are also enclosed in pages 64-67 of the paper book filed before us. The copy o....
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....s Rs.10,33,95,142/-. This clearly results only in excess of expenditure over income (i.e. deficit) to the assessee. Hence, in any case, there can never be any prejudice that could be caused to the interest of the Revenue warranting revision u/s.263 of the Act. The law is also very well settled that in order to invoke revision jurisdiction u/s.263 of the Act, the ld. PCIT has to satisfy two conditions (a) the order passed by the ld. AO must be erroneous (b) it should be prejudicial to the interest of the Revenue. These conditions are to be satisfied cumulatively. From the perusal of the order of the ld. PCIT, we find that the ld. PCIT nowhere points out as to how the order of the ld. AO is erroneous or prejudicial to the interest of the Reve....