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TMI Blog2023 (4) TMI 1346X X X X Extracts X X X X X X X X Extracts X X X X ..... had already decided the issue in favour of the assessee and had held that assessee-society constituted under Gujarat Town Planning and Urban Development Act, 1976, to execute works in connection with supply of water, disposal of sewerage and provision of other services and amenities, could be said to be providing general public utility services within the meaning of section 2(15). Further, subsequently the Supreme Court of India also affirmed/upheld the view of the jurisdictional Gujarat High Court in the aforesaid case. Accordingly, the order passed by the AO cannot be held to be erroneous and prejudicial to the interest of Revenue. Accordingly, the 263 order passed by the ld. Principal CIT is dismissed. Decided in favour of assessee. - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g full inquiry, analyzing the accounts, submissions explanation of the appellant before passing assessment order u/s 143(3) of the Act. 5. Ld. CIT (E) erred in law and on facts directing AO to disallow capital expenditure of Rs. 2, 03, 54, 26,000/- ignoring the submissions that order of AO based on jurisdictional high court judgment which is operative cannot be treated as erroneous. 3. The brief facts of the case are that the assessee filed return of income for assessment year 2017-18 declaring total income of Nil. Subsequently, the case was selected under CASS and assessment was finalized under section 143(3) of the Act at an income of Rs 94,91,81,330/-. The Principal CIT observed that though the claim of deduction of the assessee has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in appeal before us against the aforesaid order passed by Principal CIT. The counsel for the assessee submitted that Principal CIT erred in holding that the assessment order passed by the AO is erroneous and prejudicial to interest of Revenue. The Principal CIT has failed to appreciate that the Gujarat High Court, at the time when the 263 proceedings were initiated by him, had already decided the issue in favour of the assessee by holding that the assessee is a charitable organization within the meaning of section 2(15) of the Act. The Ld. Counsel for the assessee submitted that at the time when the 263 proceedings were initiated, the Gujarat High Court in the case of Ahmedabad Urban Development Authority v. ACIT 83 taxmann.com 78 (Guja ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ision of jurisdictional High Court and the power of the Principal CIT under section 263 of the Act must be exercised on the basis of the material that was available to him when he exercised the revisionary power under section 263 of the Act. Therefore, since at the time when the 263 proceedings were initiated by the Principal CIT, the Gujarat High Court had taken a view in favour of the assessee, then in view of the aforesaid decision, the order passed by the assessing officer could not be held to be erroneous and prejudicial to the interests of the Revenue. Further, the counsel for the assessee submitted that when the view taken by the assessing officer in the assessment order was subsequently confirmed by the Honourable Supreme Court in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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