TaxTMI 
TaxTMI 
2025 (6) TMI 498
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....risdiction in passing order under Section 263 of the Income Tax Act, 1961? ii. Whether on the facts and in the circumstances of the case and in law, is it correct on the part of the Appellate Tribunal to hold that it is unnecessary to place all the details in the assessment records by the Assessing Officer? iii. Whether on the facts and in the circumstances of the case and in law, is it correct on the part of the Appellate Tribunal to hold that the consideration of the Commissioner of Income Tax as to an order is erroneous in so far as it is prejudicial to the interest of the Revenue must be based on the materials on the record of proceedings called for by him? " 2. The assessee is an educational institution and had filed the return of income for Assessment Year 2009-10, on 08.02.2011 admitting 'nil' income. The return was selected for scrutiny assessment and a regular assessment order under Section 143(3) of the Income Tax Act, 1961, (in short, 'the Act') was made on 14.12.2011 accepting the exemption under Sections 11 and 12 of the Act. 3. Admittedly, before the assessment order was made under Section 143(3) of the Act, the Assessing Office....
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.... dated 28.03.2014 under Section 263 of the Act directing the Assessing Officer to examine the nature, mode and method of collecting donations, etc. In effect, the Assessing Officer was directed to re-assess the income tax return filed for the Assessment Year 2009-10. The Assessing Officer passed a fresh assessment order dated 30.03.2015 giving effect to the order under Section 263 of the Act. The appeal before the Commissioner of Income-tax (Appeals) [in short 'the CIT(A)'] was rendered infructuous by virtue of the order impugned in this appeal. 7. Ms.Pushpa states that the order of CIT (A) was challenged before the Income Tax Appellate Tribunal, which confirmed the order of CIT(A) and a separate appeal being Tax Case Appeal No.456 of 2018 was filed in this Court and the same is pending. Ms.Pushpa, in fairness, agreed that if this Court is against the Revenue in this present appeal, the other appeal would be rendered infructuous. 8. Section 263 of the Act reads as under: "263. Revision of orders prejudicial to revenue. (1) The Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner may call for and examine the rec....
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....oner under this sub-section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal. Explanation 2.-For the purposes of this section, it is hereby declared that an order passed by the Assessing Officer [or the Transfer Pricing Officer, as the case may be,] shall be deemed to be erroneous in so far as it is prejudicial to the interests of the revenue, if, in the opinion of the Principal Chief Commissioner or Chief Commissioner or Principal Commissioner or Commissioner,- (a) the order is passed without making inquiries or verification which should have been made; (b) the order is passed allowing any relief without inquiring into the claim; (c) the order has not been made in accordance with any order, direction or instruction issued by the Board under section 119; or (d) the order has not been passed in accordance with any decision which is prejudicial to the assessee, rendered by the jurisdictional High Court or Supreme Court in the case of the assessee or any other person. Explanation 3.-For the purposes of this section, "Transfer Pricing Officer" shall have t....
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....otice dated 07.03.2014 that was issued, as quoted above. It only says that "the above receipts indicate that they are business receipts and the receipt of the income such as above do not qualify the trust for being treated as a charitable one and do not conform to the objects of the trust." Why so, there is no discussion on this? The officer, thereafter, says that exemption under section 11 has been allowed by the Assessing Officer without making verification regarding the entitlement of the trust to the exemption with reference to the above issue. Why so, it is not discussed? Why does he feel that the Assessing Officer has not made a verification, there is no discussion. The whole thing appears to be a mere conjecture and a fishing enquiry by appellant. 10. It is true that the assessment order dated 14.12.2011 does not discuss the queries raised or the answers given thereto. But the fact is, the Assessing Officer had issued a questionnaire dated 26.07.2011 under Section 142 (1) of the Act raising 34 questions on various issues and assessee had given an explanation and also submitted materials. In our view, once a notice is issued and assessee is called upon to show cause or giv....
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....for the revenue the aforesaid issue now raised has not been considered earlier as the same is not referred to in the assessment order dated 12 October 2010 passed for A.Y. 2008- 09. We are of the view that once a query is raised during the assessment proceedings and the assessee has replied to it, it follows that the query raised was a subject of consideration of the Assessing Officer while completing the assessment. It is not necessary that an assessment order should contain reference and/or discussion to disclose its satisfaction in respect of the query raised. If an Assessing Officer has to record the consideration bestowed by him on all issues raised by him during the assessment proceeding even where he is satisfied then it would be impossible for the Assessing Officer to complete all the assessments which are required to be scrutinized by him under Section 143(3) of the Act. Moreover, one must not forget that the manner in which an assessment order is to be drafted is the sole domain of the Assessing Officer and it is not open to an assessee to insist that the assessment order must record all the questions raised and the satisfaction in respect thereof of the Assessing Officer....