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2024 (6) TMI 822 - HC - Income TaxIssues involved: The judgment involves the issues of maintainability of a review application under section 114 of the Code of Civil Procedure, the assessment of donations received by a trust under section 115 BBC of the Income Tax Act, 1961, the burden of proof on the trust to show donations were not anonymous, the application of circulars issued by the Central Board of Direct Taxes (CBDT), and the power of the High Court to undertake a review in an appeal under section 260-A of the Act. Issue 1: Maintainability of Review Application The applicant, a trust running educational institutions, sought a review of the order passed in its Income Tax Appeal under section 260-A of the Act. The Revenue challenged the maintainability of the review application, but the Court heard the application and passed an order considering the objections raised. The Court emphasized that the power of review is not assumed but is a statutory power, and the High Court, being a Court of record, can correct its mistakes or errors within the parameters laid down by legal precedents. Issue 2: Assessment of Donations The trust received donations from 7145 donors, and the assessment officer considered these donations as anonymous under section 115 BBC of the Act. The Commissioner of Income Tax (Appeal) modified this decision, holding only a portion of the donations as anonymous. The ITAT refused to condone the delay in the trust's appeal and upheld the assessment officer's findings. The High Court dismissed the trust's appeal under section 260-A, citing limitations in deciding the appeal and the trust's failure to prove the donations were not anonymous as required under section 68 of the Act. Issue 3: Application of CBDT Circulars The trust argued that circulars issued by the CBDT should prevent the issuance of notices under section 143 (2) of the Act. The trust contended that section 68 was not applicable as it disclosed the income from donations and was a charitable institution registered under section 12A of the Act. However, the Court found that the trust failed to provide sufficient evidence to prove the authenticity of the donors, and notices sent to donors returned unserved, indicating discrepancies in the information provided. Issue 4: Power of High Court to Undertake Review The trust relied on various legal precedents to support its argument that the High Court has the power to undertake a review in appeals under section 260-A of the Act. However, the Court emphasized that the scope of review is limited to rectifying errors apparent on the face of the record and not to re-argue the appeal. The Court found that the trust's submissions aimed at re-hearing the appeal rather than pointing out any error on the record, leading to the rejection of the review application. Separate Judgement: No separate judgment was delivered by the judges in this case.
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