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TMI Blog2024 (10) TMI 180X X X X Extracts X X X X X X X X Extracts X X X X ..... he Assessing Officer to initiate proceedings u/s 263, thus liable to be set aside HELD THAT:- ITAT 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 under Section 11 of the Act. In view of such finding of fact arrived at by the Tribunal, it cannot be said that the assessment order passed u/s 143(3) of the Act was erroneous or prejudicial to the interest of the Revenue. We are, therefore, of the opinion that no question of law much less any substantial question of law would arise from the impugned order of the Tribunal. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l 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 ascertained liability of the Government and the said grant cannot be treated either as voluntary contribution or income from property held for charitable purposes under Sections 11(1) and 12 of the Act. [5] As per the audit objection, accumulation of income from the Government grant is not available to the assessee as such grants are generally given ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 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) read with Section 263 of the Act by disallowing the exemption under Section 11(1) of the Act for the amount of grant of Rs.8,00,70,630/- received by the assessee Trust from the Government and determined total income of Rs.1,82,33,590/-. [9] The respondent assessee challenged the order dated 25th March 2021 passed under Section 263 of the Act by preferring an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ely 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 CIT in the proposal to initiate proceedings under Section 263 of the Act. The Principal CIT did not call for the office records to verify as to whether the order passed is erroneous and prejudicial to the interest of the Revenue or not. The Tribunal relied upon the decision in the case of Shantai Exim Ltd. vs. Ld. CIT(Appeals) [2017] 88 taxmann.com 361 (Ahmedaba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opies 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 railway line to the forest. Though strictly speaking, principle of res judicata does not apply to income tax proceedings, but it is also well-settled principle of law that if there is no change in the facts of the assessee from the previous years, principle of consistency demands that settled issue should not be re [1] agitated. The counsel for the assessee has submit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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