2022 (12) TMI 1267

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....the assessee for which a condonation application along with an affidavit has been filed explaining the reasons for such delay which is due to the pandemic. After hearing both the sides and following the decision of Hon'ble Supreme Court in the case of suo moto proceedings in the case of M.A.No 21 of 2022 and in M.A.665 of 2021 in suo moto writ petition (c) No. 3 of 2020 vide order dated 10.1.2022, the delay in filing of this appeal by the assessee is condoned and the appeal is admitted for adjudication. 3. Facts of the case, in brief, are that the assessee is a society registered u/s. 12AA of the I.T.Act vide order of the Director of Income Tax (Exemptions), Hyderabad in F.No.DIT(E)/Hyd/12A/36(11)/08-09, dated 13.03.2009. It filed its re....

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.... noted that the order passed by the AO is erroneous and prejudicial to the interest of the revenue and therefore, issued a notice u/s. 263 of the I.T.Act, the contents of which are as under:- Office of the Commissioner of Income Tax (Exemptions) 2nd Floor, Aayakar Bhavan, Basheer Bagh, Hyderabad-500 004. Telephone No. 040-23426031/23426032 Fax: 040-23426033 Emai_id: [email protected] F.No.CIT(E)/Hyd/263/AABTP5178R/2019-20     Date:- 12.03.2020 To Mis. Panineeya Sanskrit College . 16-227, Vivekananda Nagar Dilsukh Nagar Hyderabad Sir, Sub: Assessment order passed u/s 143(3) of the IT Act, 1961 dt. 22.12.2017, for the A Y ....

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....ees who covered under specified persons u/s 13(3) of the Act. Further, the AO finalized the assessment with a conclusion that the assessee is not eligible for exemption u/s. 11 of the Act as claimed by your trust and exemption claimed has been denied. However, the AO has not taken into consideration the revised computation of income submitted during the course of scrutiny proceedings. The AO while completing the assessment not considered income from business of R5.68,74,854/- and income from other Sources of Rs.20,95,897/ - 6. For the failure on part of the AO in not making the above, the assessment made by him vide that order dt. 22.12.2019 passed u/s 143(3) of the Act, for the A Y 2015-16, in your case, is thus erroneous, in so f....

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.... assessment order. 5. Rejecting the various explanations given by the assessee and relying on various decisions, the ld.CIT(E) held that the order passed by the AO is erroneous and prejudicial to the interest of the revenue. He, therefore, set aside the same with direction to the AO to examine the issues mentioned by him, in addition to the issues on which, the AO has already made addition and re-do the assessment after verification of the issues in accordance with law. 6. Aggrieved with such order of the Ld.CIT(E), the assessee is in appeal before the Tribunal by raising the following grounds. 1. On the facts and in the circumstances of the case, the revision order dated 30.03.2021 passed by the Id. commissioner of Income Ta....

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....ustified in assuming jurisdiction u/s. 263 of the I.T.Act. Relying on various decisions, he submitted that the order passed u/s. 263 of the I.T.Act should be quashed and the grounds raised by the assessee should be allowed. 8. The ld. DR on the other hand, strongly supported the order of the ld.CIT(E). He submitted that when admittedly the AO has not taken into consideration the income from business of Rs.68,74,854/- and income from other sources of Rs.20,95,897/- to arrive at the income to be assessed, the order has become erroneous as well as prejudicial to the interest of the revenue and therefore, the ld.CIT(E) was fully justified in invoking the provisions of section 263 of the I.T.Act and thereby setting aside the assessment. 9.....