9911796707
TMI Blog2023 (6) TMI 1401X X X X Extracts X X X X X X X X Extracts X X X X ..... ling for the office records and independently taking a view that the assessment order passed by the AO is erroneous and prejudicial to the interest of the Revenue, but the Principal CIT has acted only on the proposal sent by the AO to initiate proceedings u/s 263 - Tribunal, considering such facts emerging from the record, was of the opinion that the order passed u/s 263 of the Act is liable to be set aside. Thus on the basis of the principle of consistency and in absence of any change of facts to the effect that the assessee Trust was in receipt of the government grant in the earlier years which has been accepted by the Revenue to be considered for being eligible for exemption u/s 11 of the Act. In view of such finding of fact arrived at b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d under Section 11 (1) (a) on the Government grant? (iii) The appellant craves leave to add, amend or modify any grounds before or at the time of hearing of the appeal? [3] The brief facts of the case are that the assessee Trust M/s. Gujarat State Lion Conservation Society had filed its return of income for the Assessment Year 2015-16 declaring Nil income. The assessment proceedings were completed under Section 143 (3) of the Act on 28th March 2022 accepting the income declared in the return as Nil income by the assessee. [4] It appears that the audit objection was raised that the assessee during the year consideration has received Rs. 8,00,70,630/- from the State Government as grant and such grant receipts from the Government are only an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT under Section 263 of the Act on the ground that the assessee has availed an excess claim of relief under Sections 11 (1) and 11 (2) of the Act and passed an order under Section 263 of the Act for scrutiny as the claim made by the assessee Trust required verification on the basis of the material facts submitted and the assessment order dated 19th December 2017 passed under Section 143 (3) of the Act was set aside with a direction to make de novo assessment for the Assessment Year 2015-16 after considering the claim of the assessee Trust and after allowing an opportunity of hearing. [8] The Assessing Officer, pursuant to the order passed under Section 263 of the Act, passed an assessment order dated 28th March 2022 under Section 143 (3) r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of the assessee eligible for the accumulation under Section 11 of the Act. [10] Further, the Tribunal has considered the fact that the proceedings under Section 263 of the Act were initiated by the Principal CIT only on the basis of proposal made by the Assessing Officer and as per para 2 of the order passed under Section 263 of the Act, the Principal CIT merely acted on the basis of the proposal from the Assessing Officer and therefore, it was concluded that there was no independent application of mind by the Principal CIT to initiate proceedings under Section 263 of the Act. The Tribunal, thereafter, has extracted the order passed by the CIT (Exemptions) to demonstrate that there was no independent application of mind by the Principal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act is liable to be set aside. The Tribunal, thereafter, has considered the merits of the case by observing as under: 9. Without prejudice to the above, further, we note that even for the earlier and subsequent years, the assessee was in receipt of government grant, however, no addition on this aspect has been made by the Revenue. The assessee has appended copies of the order by Income Tax Appellate Tribunal in his own case for assessment year 2012-13 and also copy of the assessment order under section 143 (3) of the Act for assessment year 2013-14, wherein no addition on the assessee has been made by the Revenue in any of the earlier years. The assessee utilises the above grants for the purpose of carrying out the fencing of the railw ..... X X X X Extracts X X X X X X X X Extracts X X X X
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