2024 (10) TMI 180

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....ribunal, Rajkot Bench, Rajkot (for short, "the Tribunal") in ITA No.69/RJT/2021 for the Assessment Year 2015-16. [2] The appellant - Revenue has proposed the following substantial questions of law for the consideration of this Court: "(i) Whether in the law and facts & circumstances of the case, the Hon'ble Tribunal was justified in holding that the CIT has erred in facts and in law in holding that the order passed by the AO is erroneous and prejudicial to the interest of the Revenue? (ii) Whether in the law and facts & circumstances of the case, the Hon'ble Tribunal was justified in not appreciating the fact that the AO failed to bring on record her finding on the issue of accumulation claimed under Section 11(1)(a) on....

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....tion), Ahmedabad forwarded a letter to the Assessing Officer dated 22nd February 2021 submitting that the audit objection is not acceptable in light of the facts and legal position narrated by the Assessing Officer in its report. However, the then CIT (Exemption), Ahmedabad, vide letter dated 5th March 2021, conveyed his decision to initiate remedial action under Section 263 of the Act on the factual aspect of the case and the Assessing Officer was directed to submit a suitable proposal in a prescribed format to initiate proceedings under Section 263 of the Act. [7] Subsequently, vide letter dated 19th April 2022, proposal was made to initiate proceedings under Section 263 of the Act. Accordingly, notice was issued by the Principal CIT u....

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....m the Government to be considered for the purpose of exemption under Section 11(1) of the Act. The assessee also replied to such notice vide letters dated 21st November 2017 and 8th December 2017 and therefore, it was not the case where the Assessing Officer did not apply its mind to the issue. The Tribunal also reproduced the relevant extract from the query raised by the Assessing Officer in the show cause notice and the reply of the assessee and thereafter, concluded that it was not the case where the issue was not considered by the Assessing Officer during the course of assessment proceedings. The Tribunal also found that the assessee was received the Government grants in earlier years as well and the Revenue had accepted the same as inc....

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....d that before taking any action the Commissioner himself shall apply his mind after examining record of any proceedings and his satisfaction is must. The Tribunal, therefore, came to the conclusion that the order passed by the Principal CIT under Section 263 of the Act reveals that he has not applied his mind by calling for the office records and independently taking a view that the assessment order passed by the Assessing Officer is erroneous and prejudicial to the interest of the Revenue, but the Principal CIT has acted only on the proposal sent by the Assessing Officer to initiate proceedings under Section 263 of the Act. The Tribunal, considering such facts emerging from the record, was of the opinion that the order passed under Section....