TaxTMI 
TaxTMI 
2025 (8) TMI 837
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....invoking the powers under section 263 of the Income Tax Act, 1961. 2. The Ld. PCIT erred in concluding that the original order u/s 143(3) passed by the Ld. AO is erroneous and prejudicial to the interest of revenue. 3. The ld. PCIT ought to have appreciated the fact that interest income is duly recorded in the books of account and included in the total receipts shown in Income and expenditure account and therefore he ought not to have set aside the order passed u/s 143(3) on 28/12/2022. 4. The appellant craves its right to add to or alter the Grounds of Appeal at any time before or during the course of hearing of the case." 3. Facts of the case, in brief, are that the assessee is a university engaged in providi....
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....) of the IT Act it was noticed by Ld. CIT(E) that the assessee is following Mercantile System of Accounting regularly and therefore as per settled principles of Income Tax Act he was required to consider the accrued interest income of Rs. 15,44,74,562/- for computing his total income. However, the Assessing Officer excluded the above amount on the basis of accrued interest income which was not received in cash during the period under consideration and deducted the above amount from gross receipts. It was therefore found by Ld. CIT(E) that the Assessing Officer wrongly reduced the accrued interest of Rs. 15,44,74,562/- from the gross receipts of Rs. 1,66,61,49,930/- and determined the net receipts of Rs. 1,51,16,75,368/- from which revenue e....
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....CIT(E) to exercise the powers u/s 263 of the IT Act with regard to the same assessment order. In support of its contentions, Ld. AR relied on the order passed by Hon'ble Madras High Court in the case of Smt. Renuka Philip vs. ITO, Tax Case Appeal No.286 of 2012 dated 14.11.2018 [2018 (12) TMI 129 - Madras High Court]. Ld. AR further relied on the decision passed by the coordinate bench of this Tribunal in the case of JKG Construction Private Limited vs. ITO in ITA No.1199/Del/2024 order dated 10.01.2025 wherein reliance was placed on above judgement of Hon'ble Madras High Court (supra) and the appeal of the assessee was allowed and the order passed u/s 263 of the IT Act was quashed. Accordingly, Ld. AR requested the Bench to quash the order....
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....relevant provision of section 263(1) explanation 1(c) which reads as follows :- "Revision of orders prejudicial to revenue. 263(1)--- (a)-- (b)-- (c) where any order referred to in this sub-section and passed by the Assessing Officer or the Transfer Pricing Officer, as the case may be, had been the subject matter of any appeal filed on or before or after the 1st day of June, 1988, the powers of the Principal Commissioner or Commissioner 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." 10. In this regard, we find that although an appeal is admittedly pending before the Ld. CIT(A), the issue co....