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2022 (7) TMI 257 - ITAT MUMBAIRevision u/s 263 - Entitlement to exemption u/s 11 - accumulation of income made u/s.11(2) - HELD THAT:- Entire details of accumulation of income made u/s.11(2) of the Act together with utilization thereon for each of the years commencing from A.Yrs. 2006-07 to 2015-16 are enclosed as filed before us. While this is so, it could be safely concluded that all the requisite enquiries were duly carried out by the ld. AO in the assessment proceedings itself, before accepting the returned income of the assessee. CIT is not even conscious of the fact that form FC3 annual return has been changed to form FC4. This categorically goes to prove the complete non-application of mind on the part of the ld. PCIT before invoking his revision jurisdiction u/s.263 of the Act. We hold that the ld. AO had made requisite enquiries before concluding the assessment and hence, there could not be any revision proceeding on the ground that proper enquiries were not carried out by the ld. AO in the course of assessment proceedings. The law is very well settled that revision jurisdiction u/s.263 of the Act could be invoked only in the event of lack of enquiry and not for inadequate enquiry; even though, in the instant case, there is no inadequate enquiry. From the perusal of the order of the ld. PCIT, we find that the ld. PCIT nowhere points out as to how the order of the ld. AO is erroneous or prejudicial to the interest of the Revenue. On this ground also, the revision order passed by the ld. PCIT deserves to be quashed. Moreover the activities of the assessee Institution had not changed from earlier years and the ld. AO had the benefit of scrutiny assessment orders framed for A.Y. 2012-13 u/s.143(3) of the Act dated 03/02/2015 and for A.Y. 2013-14 framed u/s.143(3) of the Act dated 28/03/2016 before him, while framing the assessment for A.Y.2015-16 i.e. the year under consideration. In view of the above, we have no hesitation in quashing the revision order passed by the ld. PCIT u/s.263 of the Act as it is bad in law for more than one reason as detailed hereinabove. Accordingly, the grounds raised by the assessee are allowed.
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