9911796707
TMI Blog2023 (10) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... Now, the appellant trust worked out the surplus income after disallowing the expenditure, which is not supported by the vouchers, but there is no material on record to indicate that the income offered by the assessee trust represents the entire expenditure not supported by the vouchers. AO had recorded a finding that the disclosure of expenditure was verified on random basis goes to demonstrate that the AO had not verified in full the entire expenditure claimed by the assessee trust. The fact that the vouchers were not found in the premises of the appellant trust at the time of survey proceedings, should have triggered the AO to enquire and verify the evidence of the expenditure incurred on those items such as Bonus, Perks and Allowances, O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evant to the appeal in ITA No.680/PUN/2023 for the assessment year 2013-14 are stated herein. ITA No.680/PUN/2023, A.Y. 2013-14 : 4. Briefly, the facts of the case are that the appellant is a trust incorporated under the provisions of the Trust Act. The appellant trust was formed with the object of imparting education. The appellant trust was duly registered under the provisions of section 10(32C)(vi) of the Act. The appellant trust filed the Return of Income for the assessment year 2013-14 under the provisions of section 139 of the Act on 23.09.2013 disclosing Rs. Nil income after claiming exemption u/s 10(23C)(vi) of the Act. Against the said return of income, the assessment was completed by the Dy. Commissioner of Income Tax, Exemption ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment was completed by the Assessing Officer vide order dated 28.06.2019 passed u/s 143(3) r.w.s. 147 of the Act at total income of Rs. 6,69,905/- assessing the income declared during the course of survey proceedings as taxable surplus income of assessee trust. 7. Subsequently, the ld. PCIT, on review of the assessment records, found that the appellant trust had booked substantial expenses under the various heads such as "Bonus, Perks and Allowances, Office Expenses, Tours and Travelling Expenses, Building Repairs Expenses etc". Most of the expenditure was incurred in cash and booked in the month of March in every financial year. The vouchers and supporting evidence in support of that expenditure were not found in the premises of the appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hold that the very fact that the Assessing Officer had recorded a finding that the verification was made on sample basis goes to demonstrate that the entire expenditure was not verified by the Assessing Officer. The ld. PCIT given detailed findings vide para no.9.8, 9.9 and 10, as to how the assessment order suffers from the lack of adequate enquiries and had proceeded to hold that for the lack of adequate enquiry by the Assessing Officer, the assessment order is erroneous and prejudicial to the interests of the Revenue and, accordingly, the assessment order is set-aside with a direction to the Assessing Officer to make a fresh enquiry and verification in respect of the expenditure claim by the assessee trust. The ld. PCIT also formed an op ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... power of revision, the above two conditions are required to be satisfied cumulatively. References in this regard can be made to the decision of the Hon'ble Supreme Court in the case of Malabar Industrial Co. Ltd. vs. CIT, 243 ITR 83 (SC) and in the case of CIT vs. Max India Ltd., 295 ITR 282 (SC). The error in the assessment order should be one that it is not debatable or plausible view. In a case where the Assessing Officer examined the claim took one of the plausible views, the assessment order cannot be termed as an "erroneous". 12. Therefore, in the light of the above legal position, we proceed to examine the facts of the present case as to whether or not the Assessing Officer had caused necessary enquiries in respect of the expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e and, therefore, the assessment order passed by the Assessing Officer is erroneous and prejudicial to the interests of the Revenue. The facts of the case are hit by Explanation 2 inserted to section 263 of the Act. Therefore, we do not find any reasons to interfere with the order passed by the ld. PCIT. The ld. PCIT was justified in the facts of the present case in exercising the power of revision vested with him u/s 263 of the Act. Accordingly, the grounds of appeal raised by the assessee trust stand dismissed. 13. In the result, the appeal filed by the assessee in ITA No.680/PUN/2023 for A.Y. 2013-14 stands dismissed. ITA Nos.681 to 689/PUN/2023, A.Ys. 2013-14 to 2017-18 : 14. Since the facts and issues involved in all the above capt ..... X X X X Extracts X X X X X X X X Extracts X X X X
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