Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2016 (7) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2016 (7) TMI 535 - AT - Income TaxRevision u/s 263 - corpus donations received by the assessee-trust were not examined in view of the provisions of Act as the trust was not registered under the provisions of sec.12A - Held that:- Provisions of sec.12 clearly lay down that any voluntary contributions made to a trust shall be treated as the income of the property held under trust which is exempt u/s 11(1) of the Act. Further the provisions of sec.11(1)(a) of the Act, income in the form of voluntary contributions made with a specific direction that they shall form part of the corpus of the institution, shall be exempt from tax only if the trust is recognized u/s 12A of the Act. It is undisputed fact that the AO had not examined the issue from this angle. Furthermore, the AO, having rejected the contention of the assessee-trust that the amount of ₹ 25 lakhs was received from International Construction Ltd., as loan, had failed to bring to tax. Thus, there is a clear contradiction in the order of assessment and non-application of mind on the material aspect of the issues raised by the show cause notice u/s 263. Therefore, the ratio laid down in the case of Malabar Industrial Co.Ltd. Vs. CIT (2000 (2) TMI 10 - SUPREME Court ) is clearly applicable wherein it was held that non-application of mind on the issue, renders the assessment order erroneous and prejudicial to the interests of revenue. Furthermore, in the case of CIT vs. Infosys Technologies Ltd. (2012 (2) TMI 132 - KARNATAKA HIGH COURT ) has clearly laid down that by exercising power u/s 263, if the order is set aside, there was no prejudice caused to the assessee. Hence, order u/s 263 is maintainable. Respectfully following the decisions, we hold that the order of the CIT dated 30/07/2013 is valid in law and CIT is justified in exercising revision power u/s 263 of the Act. - Decided against assessee.
|