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2017 (4) TMI 406 - AT - Income TaxRevision u/s 263 - claim of exemption u/s.11 entitlement denied - Held that:- As from the record we found that the assessee filed its return of income on 30.09.2009 along with the Income & Expenditure Account, Balance Sheet and Audit Report in Form No.10B declaring total income at Rs.NIL. The trust is registered as a Charitable Organisation with DIT(E), Mumbai u/s. 12A under vide Registration No.INS/36714. The trust claims to be engaged in Planning and Development and during the course of scrutiny assessment, AO after making detailed enquiry declared assessee’s claim of exemption u/s.11. We had carefully gone through the order passed by the AO u/s.143(3) as well as the order passed by CIT(A) u/s.263, as well as the order of the Tribunal dated 31/10/2015. We found that exactly under similar facts and circumstances, the order passed by CIT(A) u/s.263 was cancelled by observing that in so far as entire assessment order of the whole of the surplus amount has been challenged before the CIT(A), then the entire assessment order including taxing of the entire exempt income u/s.11 is the subject matter of the appeal and there is complete merger with the order of CIT(A) within the terms and ambit of section 263 read with clause (c) Explanation 1. Tribunal also observed that in so far as tax effect is concerned, there is no difference at all between the income which was assessed in the original assessment order and the income which is now being sought to be assessed in wake of order u/s.263. Under both these assessments surplus amount will get taxed, hence, no prejudice is caused to the Revenue so far as tax effect is concerned, except for the fact that Section 11 is being sought to be examined from a different perspective. Respectfully following the order of the Tribunal in case of Slum Rehabilitation Authority [2016 (1) TMI 798 - ITAT MUMBAI] we do not find any merit in the order of CIT(A) u/s.263 - Decided in favour of assessee
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