9911796707
TMI Blog2025 (4) TMI 328X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. 2. In this appeal, the assessee has raised the following grounds of appeal. "1. (a) On the facts and in the circumstances of the case and in law, the Ld. Pr. Commissioner of Income Tax (PCIT) erred in initiating revision proceedings u/s. 263 of the Income Tax Act, 1961 vide show-cause notice dated 23.01.2019 and thereby erred in passing an order w/s. 263 of the Income Tax Act, 1961 as the assessment sought to be revised is neither erroneous nor prejudicial to the interest of revenue. 1. (b) The Ld. PCIT erred in invoking the revisionary power under section 263(1) of the Income Tax Act, 1961 without appreciating the fact that the Ld. Assessing officer (AO) after making specific enquiry, examining the facts and proper application of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case, the provisions of the Income Tax Act, 1961 and the Rules made thereunder." 3. In the present appeal, the assessee is aggrieved against the invocation of revision proceedings under section 263 of the Act by the learned PCIT. 4. The brief facts of the case pertaining to this issue as emanating from the record, are: The assessee is in the business of running of stock exchange and the main object of the assessee is to facilitate, promote, assist, regulate and manage in public interest, dealings in securities of all kinds and to provide specialized advanced, automated and modern facilities for trading, clearing and settlement of securities and to ensure trading in transparent, fair and open manner. For the year under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the revenue, as the AO failed to make relevant and meaningful inquiry as warranted by the facts of the present case. 6. In response to the notices issued under section 263 of the Act, the assessee submitted that during the assessment proceedings, the AO examined the issue of deduction of contribution to the Core SGF claimed by the assessee and framed the assessment order after being fully satisfied with the submissions of the assessee. The assessee further submitted that during the assessment proceedings, the AO raised the query regarding the contribution to the Core SGF and the same was duly responded to by the assessee with all necessary documents/evidence. Thus, the assessee submitted that the AO allowed the deduction of contribution to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee share in the same and to allow such amount as expenditure. Being aggrieved, the assessee is in appeal before us. 8. We have considered the submissions of both sides and perused the material available on record. In the present case, revision proceedings under section 263 of the Act were initiated as the AO allowed the contribution made by the assessee to Core SGF, which as per the learned PCIT is a contingent liability, and therefore, the learned PCIT held that the assessment order is based on wrong assumption of facts and incorrect application of law and the AO has not conducted proper inquiry and verification while allowing the claim of the assessee. We find that during the year under consideration, an amount of Rs. 170 crore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en made. However, as a matter of prudence during the financial year 2013-14 the Company has made a provisional appropriation of Rs. 219.40 crores being 25% of the profit after tax for Financial Year 2012-13 out of the opening balance of Profit and Loss Account as on April 1, 2013 and Rs. 254.82 crores being 25% of the profit after tax for the year ended March 31, 2014, Further, during the year, the Company has made a provisional appropriation of Rs 52.97 crores after adjustment for transfer of & 170 crores as mentioned here in below in note (35)(b). Accordingly, total provisional appropriation amounting to Rs. 527.19 crores (Previous Year - Rs. 474.22 crores) has been shown under the head Short Term Provisions in the Balance Sheet b) In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t & Loss account. Responding to the aforesaid notice vide submission dated 23.09.2017, forming part of the paper book from pages 47-60, we find that the assessee, inter alia, furnished a detailed note on the allowability of contribution amounting to Rs. 170 crore made to Core SGF. We find that the assessee also submitted the complete copy of the Circular dated 27.08.2014 issued by the SEBI in respect of Core SGF. 10. Therefore, from the perusal of the notices issued by the AO during the assessment proceedings and the reply filed by the assessee thereto, we find that the issue of the claim of contribution to Core SGF was specifically raised during the scrutiny assessment proceedings, and the same was duly replied to by the assessee. Therefo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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