Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2023 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2023 (3) TMI 1107 - ITAT JODHPURRevision u/s 263 by CIT - application of section 2(15) - HELD THAT:- Any issue which was considered by the AO in the assessment order, such order would be open for revision u/s 263 of the Act, if such order is erroneous and prejudicial to the interest of justice. The controversy related to application of section 2(15) of the Act, has now been set at rest by the decision of ACIT(E) vs Ahmedabad Urban Development Authority (2022 (10) TMI 948 - SUPREME COURT] by holding that as per provision of section 2(15) of the Act, such advancement of the object would not be considered charitable if an institution is engaged in “trade, commerce or business” or provides any service relating to “trade, commerce or business” for which cess, fee or other consideration is received. In the case in hand, the AO despite having recorded that though the assessee trust’s activity fall under the ambit of “general public utility”, they are of commercial in nature and are covered by first and second proviso of section 2(15) - However, he erroneously assessed income of the assessee at Rs.NIL. Thus, the case laws relied by the Ld. Counsel for the assessee would not help as it is the clear case where the assessment order is erroneous and self-contradictory. Under these undisputed facts, there is no infirmity in the order of Ld.CIT(E) in revising the assessment under section 263 of the Act. Thus, grounds raised by the assessee are devoid of merit hence, dismissed.
|