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2016 (8) TMI 916 - AT - Income TaxRevision u/s 263 - applicability of provisos to Sec.2(15) of the IT Act and the failure on the part of the Assessing Officer to consider the same - Held that:- We have gone through the assessment order passed u/s.143(3) of the Act dated 28.02.2013. In this assessment order, AO admittedly not discussed anything about the proviso below to sec.2(15) of the Act and it is admitted fact that assessee is earning huge income from the Working Women’s Hostel, Rani Meyyammai Hostel and also running Kalayanamandapam and Auditorium. After insertion of First and Second proviso to sec.2(15) of the Act with effect from 01.04.2009, the AO has to look into whether the above activities carried by the assessee is in commercial nature or not. There is no whisper in the order of the AO on this isuse and had the AO examined applicability of amended provisions of the section 2(15) of the Act, he would have denied the exemption u/s.11 of the Act as the assessee’s object was of “General Public Utility” and the activities of the assessee were in the nature of trade, commerce or business In the present case, the issue relating to applicability of proviso to sec.2(15) of the Act, thereby its entitlement of exemption u/s.11 is not at all before the CIT(A) for the assessment year under consideration i.e. 2010-11. As rightly observed by the CIT(E) in para- 37, the proviso to sec.263(1) which provides that the powers of the Commissioner u/s.263 shall extend and shall always to have extended to such matters who had not been considered and decided in appeal. Being so, we do not find any infirmity in the order of CIT(E) and the same is confirmed on both legal as well as on merits. - Decided against assessee
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