2025 (8) TMI 822

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....he facts and in the circumstances of the case as well as law on the subject, the learned Pr. Commissioner of the Income Tax has grievously erred in initiating the proceedings u/s.263 of the Act, 1961. 2. On the facts and in the circumstances of the case as well as law on the subject, the learned Pr. Commissioner of the Income Tax has grievously erred in assuming jurisdiction u/s.263 of the Act, 1961. 3. On the facts and in the circumstances of the case as well as law on the subject, the learned Pr. Commissioner of the Income Tax has erred in violating the principles of natural Justice by not the mentioning the grounds for initiating action u/s.263 of Income Tax Act, 1961 in the show cause notice issued. As such the order passed u/s.26....

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....pointing out as to how the order is erroneous and prejudicial to interest of revenue. 8. It is therefore prayed that the above proposed proceedings may please be revoked as learned members of the tribunal may deem it proper. 9. Appellant craves liberty to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal." 3. Facts of the case in brief are that assessee filed its return of income for AY. 2018-19 on 31.10.2018, declaring total income of Rs. 9,57,74,320/-. The assessee subsequently filed revised return of income on 31.01.2019, declaring total income of Rs. 10,06,49,320/-. The case was selected for complete scrutiny assessment under E-assessment Scheme, 2019 on the reasons of (i) duty drawba....

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....bution towards EPF/ESI on or before due date for availing deduction u/s 36(1)(va) of the Act. Hence, the order passed by AO was found to be without proper verification and inquiry as stated above. The order was accordingly erroneous in so far as it is prejudicial to the interests of revenue within the meaning of section 263 of the Act. He issued show cause notice u/s 263 of the Act which is at page 5 to 8 of the order u/s 263 of the Act. The reply of the assessee is at para 4.1 at page 8 of the order. In the reply, the assessee submitted that it was ready to offer for taxation, the amount of donation to Sri Arvindo Institute of Applied Scientific Research Trust claimed for deduction u/s 80G of the Act. It also confirmed to make the addition....

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....PCIT at para 2 of the order u/s 263 of the Act. It includes three donations totalling to Rs. 39,00,000/- to Shri Arvindo Institute of Applied Scientific Research Trust and the remaining donations of Rs. 11,73,000/- were to four other trusts. Registration of Shri Arvindo Institute of Applies Scientific Research Trust was cancelled but the other Trusts still enjoy benefit of deduction u/s 80G of the Act. Hence, deduction u/s 80G should be disallowed only in respect of donations to Shri Arvindo Institute of Applies Scientific Research Trust and not of other Trusts. The ld. AR further submitted that deduction u/s 80G has been limited to 10% of the gross total income amounting to Rs. 12,68,250/- and not Rs. 25,36,500/-, as mentioned by the PCIT.....