TaxTMI 
TaxTMI 
2023 (10) TMI 30
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....common issues are involved in all the above captioned ten appeals of two different assessees, we proceed to dispose of the same by this common order. 3. For the sake of convenience and clarity, the facts relevant to the appeal in ITA No.680/PUN/2023 for the assessment year 2013-14 are stated herein. ITA No.680/PUN/2023, A.Y. 2013-14 : 4. Briefly, the facts of the case are that the appellant is a trust incorporated under the provisions of the Trust Act. The appellant trust was formed with the object of imparting education. The appellant trust was duly registered under the provisions of section 10(32C)(vi) of the Act. The appellant trust filed the Return of Income for the assessment year 2013-14 under the provisions of section 139 of the A....
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....ly, a notice u/s 148 was issued, which was served upon the appellant trust on 15.04.2019. In response to notice u/s 148, the appellant trust had filed the return of income on 24.04.2019. Against the said return of income, the assessment was completed by the Assessing Officer vide order dated 28.06.2019 passed u/s 143(3) r.w.s. 147 of the Act at total income of Rs. 6,69,905/- assessing the income declared during the course of survey proceedings as taxable surplus income of assessee trust. 7. Subsequently, the ld. PCIT, on review of the assessment records, found that the appellant trust had booked substantial expenses under the various heads such as "Bonus, Perks and Allowances, Office Expenses, Tours and Travelling Expenses, Building Repair....
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....ing Officer was without making enquiry and in the light of the settled position of law the assessment cannot be termed as "erroneous". However, on due consideration of the submissions made by the assessee, the ld. PCIT proceeded to hold that the very fact that the Assessing Officer had recorded a finding that the verification was made on sample basis goes to demonstrate that the entire expenditure was not verified by the Assessing Officer. The ld. PCIT given detailed findings vide para no.9.8, 9.9 and 10, as to how the assessment order suffers from the lack of adequate enquiries and had proceeded to hold that for the lack of adequate enquiry by the Assessing Officer, the assessment order is erroneous and prejudicial to the interests of the ....
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....Exemption). The Parliament had conferred the power of revision on the Commissioner of Income Tax u/s 263 of the Act in case the assessment order passed is erroneous and prejudicial to the interests of revenue. In order to invoke the power of revision, the above two conditions are required to be satisfied cumulatively. References in this regard can be made to the decision of the Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs. CIT, 243 ITR 83 (SC) and in the case of CIT vs. Max India Ltd., 295 ITR 282 (SC). The error in the assessment order should be one that it is not debatable or plausible view. In a case where the Assessing Officer examined the claim took one of the plausible views, the assessment order cannot be terme....
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....lding Repairs Expenses etc", which the Assessing Officer had failed to do so. Therefore, this fact clearly demonstrates that the Assessing Officer had failed to conduct necessary enquiries in respect of the above items of expenditure and, therefore, the assessment order passed by the Assessing Officer is erroneous and prejudicial to the interests of the Revenue. The facts of the case are hit by Explanation 2 inserted to section 263 of the Act. Therefore, we do not find any reasons to interfere with the order passed by the ld. PCIT. The ld. PCIT was justified in the facts of the present case in exercising the power of revision vested with him u/s 263 of the Act. Accordingly, the grounds of appeal raised by the assessee trust stand dismissed.....