2013 (5) TMI 961 - AT - Income Tax

Summary

Issues involved: Appeal against order dated 11.10.2012 for Assessment Year 2009-10 u/s 263 of the Income Tax Act, 1961.

Grounds of Appeal:
1. CIT's decision on regular assessment order being erroneous and prejudicial to revenue.
2. Validity of regular assessment order dated 28.12.2011 u/s 263.
3. Exclusion of donation from income and expenditure account.
4. Nature of donation and exemption under section 10(23C)(iiiad).
5. Contrary order based on facts, law, and natural justice.

Facts of the Case:
- Assessee society engaged in education activities.
- CIT found assessment order erroneous and prejudicial to revenue.
- CIT issued show cause notice regarding society's claim under section 11/12.
- CIT held assessment order under section 143(3) erroneous and prejudicial to revenue.

Arguments:
- Assessee's engagement in educational activities and fee collection.
- Claim of exemption under section 10(23C)(iiiad) due to receipts below one crore.
- Registration under section 12A/12AA from A.Y. 2010-11.
- Reference to relevant Income & Expenditure Account and legal precedent.

Decision:
- Commissioner's power of suo motu revision under section 263.
- Order must be erroneous and prejudicial to revenue for revision.
- Definition of "erroneous" and criteria for invoking section 263.
- Commissioner's power not to substitute judgment of Income-tax Officer.
- CIT's view on gross receipt exceeding one crore not justifying revision.
- A.O.'s view supported by legal precedent, making order not erroneous.
- CIT's order set aside as not in accordance with law.
- Distinction of cited decisions on facts.
- Assessee's appeal allowed.

Conclusion: Assessee's appeal allowed against CIT's order under section 263 for Assessment Year 2009-10.