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2017 (11) TMI 572 - HC - Income TaxEligibility to registration u/s 12AA - denial of registration on the ground that the assessee had failed to produce material to establish the authenticity of the unsecured loan received by it - revision of mistake seeked - Held that - The object clause of the assessee as placed on the paper book shows that it is running school for educational purposes. The assessment order of earlier years as placed in the paper book had also clearly pointed out to the same effect. However, liberty was granted to the Assessing Officer to examine the books of account and in case there was any violation of the Act then to disallow exemption under Section 11 of the Act. No illegality or perversity could be demonstrated in the aforesaid approach of the Tribunal. However, inspite of the same, the revenue moved an miscellaneous application before the Tribunal for recalling the order, Annexure A-2. The Tribunal had noticed that by moving the MA, the revenue had tried to review the order which was not permissible under Section 254 of the Act. Further, vide order dated 20.5.2015, the Tribunal had clearly held that the Assessing Officer would be entitled to examine the books of account of the assessee during assessment proceedings and if anything adverse was found, the Assessing Officer can disallow exemption under Section 11 of the Act. The Tribunal had rightly held that the revenue has failed to point out any mistake apparent on the face of the record and rectifiable under Section 254(2) - Decided against revenue
Issues:
1. Appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal. 2. Validity of the order of the ITAT in dismissing the miscellaneous application. 3. Justification of declining the prayer of the revenue to recall the ITAT's order. Analysis: 1. The appeal was filed by the revenue under Section 260A of the Income Tax Act against the order of the Income Tax Appellate Tribunal (ITAT) in MA No. 08/Del/2016 in ITA No. 6251/Del/2013. The substantial questions of law raised were regarding the dismissal of the miscellaneous application by the ITAT and the justification for declining the prayer of the revenue to recall its order. 2. The facts of the case involved the assessee applying for registration under Section 12AA of the Act, which was initially rejected by the Commissioner of Income Tax (CIT). The Tribunal later allowed the appeal and directed the CIT to grant registration to the assessee. The revenue then filed a miscellaneous application before the Tribunal for recalling its order, which was dismissed. The Tribunal had granted liberty to the Assessing Officer to examine the books of account for any violations of the Act. 3. The Tribunal found no merit in the appeal by the revenue. It was noted that the revenue had failed to point out any mistake in the order of the ITAT that was rectifiable under Section 254(2) of the Act. The Tribunal held that the revenue's attempt to review the order through the miscellaneous application was impermissible under the Act. The Tribunal's order had already addressed the powers of the CIT and the Assessing Officer in detail, and no mistake was found in the order justifying its recall. 4. The Tribunal's decision was upheld, stating that no substantial questions of law arose in the appeal. The appeal was dismissed, affirming the Tribunal's order and finding no illegality or perversity in the decision.
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