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TMI Blog2024 (7) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... n exiting solely for philanthropic purposes, in the instant case, the assessee is eligible for exemption under section 10(23)(iiac) of the Act and there is no prejudice caused to the Revenue in the instant facts. HELD THAT:- While passing the order, CIT has not commented upon various alternate arguments taken by the assessee while passing the 263 order. The assessee is a Govt. funded organization for philanthropic purposes. During the course of 263 proceedings, the assessee submitted that in the instant facts, the assessee is eligible for deduction u/s. 10(23)(iiiac) and also u/s. 11 of the Act. Admittedly, the assessee incorrectly and inadvertently filed incorrect claim u/s. 10(23)(iiiae) of the Act. However, owing to this mistake, no prej ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 9. 2. The assessee has raised the following grounds of appeal:- 1. That on the facts and the circumstances of the case and in law, the learned Commissioner of Income-tax (Exemptions) ( ld. CIT(E) ) has erred in initiating the revisionary proceedings and passing an order under section 263 of the Income-tax Act, 1961 ( the Act ) for the year under consideration. 2. That on the facts and the circumstances of the case and in law, the proceedings under section 263 of the Act are not in accordance with law and consequently ought to be struck down. 3. That on the facts and the circumstances of the case and in Jaw, the Ld. CIT(E) has erred in treating the Assessment Order dated 21st April, 2021 as erroneous, considering it to be prejudicial to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeal at the time of or before the hearing of the appeal. 3. The brief facts of the case are that the assessee is operating a civil hospital campus at Ahmedabad and is exiting solely for philanthropic purpose. The assessee trust is registered u/s 12AA and is also notified u/s 10(23C)(vi) for the year under consideration. The assessee has filed form 10 B (required for section 11 Exemption) as well as Form 10 BB (required for Section 10(23C) Exemption). The assessee is supposed to apply 85 % of its income for the object for the trust and in case it cannot apply 85 % then shortfall can be accumulated to be to applied within next five years. The said amount of shortfall was Rs 16.65 Cr. This amount of Rs 16.65 Cr has been correctly classified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard the rival contentions and perused the materials available on record. We observe that the primary contention of the counsel for the assessee is that firstly the assessee is a Government funded organization operating several hospitals and exiting solely for philanthropic purposes. The contention of the counsel for the assessee was that the CIT has failed in not taking cognizance of various arguments taken by the assessee during the course of 263 proceedings. The assessee had submitted before the CIT that the assessee is also eligible for claim of exemption u/s. 11 of the Act as well. Further, the assessee had taken an argument during revision proceedings that since the assessee is wholly and substantially funded by Government and e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is eligible for exemption u/s. 11 and 10(23C)(iiiac) of the Act. We observe that while passing the order, CIT did not comment on the alternate claim u/s. 11 r.w.s 10(23C)(iiiac) of the Act and simply set aside the assessment order without giving any specific finding whether the assessment order passed is prejudicial to the interest of the Revenue. In our considered view, the CIT should have considered the submissions filed by the assessee (along with supporting documents) with regard to the claim of exemption u/s. 10(23C)(iiiac) and thereafter after looking into the claim of the assessee and written submission filed by the assessee CIT should have given a specific finding as to whether in the instant facts any prejudice has been caused to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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