9911796707
TMI Blog2025 (1) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner of Income Tax-II, Chandigarh dated 21.03.2013, was set aside and the order of assessment passed by the Assessing Officer dated 16.12.2010, was restored. 2. Learned counsel for the appellant submits that order was passed by the CIT-II, Chandigarh, under Section 263 of the Income Tax Act, 1961 and the basis for passing of the said order was that after the assessment proceedings were conducted by the Assessing Officer, the audit objections were raised and it was pointed out in the objections that the inquiry was not conducted as required by the concerned Assessing Officer relating to the ownership and entitlement of the cars and houses which were said to be the alleged source of income for investment in the mutua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and if they are found to be valid, the order of the Assessing Officer would have to be held as erroneous. 5. We have carefully considered the submissions as above and we find that Section 263 of the Act, provides as under:- 263. Revision of orders prejudicial to revenue. (1) The [Principal Chief Commissioner or Chief Commissioner or Principal Commissioner] or Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Assessing Officer [or the Transfer Pricing Officer, as the case may be,] is erroneous in so far as it is prejudicial to the interests of the revenue, he may, after giving the assessee an opportunity of being heard and after making or causing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to have included all records relating to any proceeding under this Act available at the time of examination by the Principal [Chief Commissioner or Chief Commissioner or Principal] Commissioner or Commissioner; (c) where any order referred to in this sub-section and passed by the Assessing Officer 92[or the Transfer Pricing Officer, as the case may be,] had been the subject matter of any appeal filed on or before or after the 1st day of June, 1988, the powers of the* Principal Commissioner or Commissioner under this sub- section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal. Explanation 2.-For the purposes of this section, it is hereby declared that an ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court. Explanation.-In computing the period of limitation for the purposes of sub-section (2), the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded. 6. Thus, the sine-qua non for interference by the CIT under Section 263 of the Act to the assessment order passed by the Assessing Officer is of satisfaction of certain conditions as noticed above i.e. that the order passed by Assessing Officer is erroneous and secondly that the order results in prejudice to the revenue. 7. In the present case, it is an admitted position that after the assessment order was passed, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritable Trust had expired on 22-9-1972. That means it had expired before 1-4-1973. Therefore, in the re- levant years of account this Trust was not a recognised charita- ble trust. In that view of the matter the donation to P.V.S. Me- morial Charitable Trust did not qualify for deduction under Sec- tion 80G as a donation made to a recognised charity. 3. We are of the view that both the Tribunal and the High Court were in error in holding that the information given by internal audit party could not be treated as information within the mean- ing of Section 147(b) of the Income Tax Act. The audit party has merely pointed out a fact which has been overlooked by the In- come Tax Officer in the assessment. The fact that the recognition granted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llate Tribunal and cross- objections were also filed by the assessee. The same was decided on 15.12.2015, whereby the departmental appeal as well as cross-objections were disposed of on the basis of order passed by the ITAT dated 14.10.2014, which is impugned in the present appeal. 11. Since, we have already set aside the order passed by the ITAT dated 14.10.2014, by answering the question in favour of the revenue as above, the order passed by the ITAT dated 15.12.2015 will also have to be necessarily set aside and the ITA-214/CHD/2015 along with CO No.9/CHD/2015, are restored for fresh adjudication by the ITAT. The ITAT is now directed to examine the said appeal independently on what we have already passed an order including examining the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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