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2019 (12) TMI 439 - AT - Income TaxRevision u/s 263 - HELD THAT:- AO was statutorily required to make the assessment under Section 143(3) after scrutiny and not in a summary manner as contemplated by Sub-section (1) of Section 143. AO is therefore, required to act fairly while accepting or rejecting the claim of the assessee in cases of scrutiny assessments. AO should protect the interests of the revenue and to see that no one dodged the revenue and escaped without paying the legitimate tax. AO is not expected to put blinkers on his eyes and mechanically accept what the assessee claims before him. It is his duty to ascertain the truth of the facts stated and the genuineness of the claims made in the return. The order passed by the AO becomes erroneous when an enquiry has not been made before accepting the genuineness of the claim which resulted in loss of revenue. In the present case, the main object of the assessee is to offer relief to the poor. However, the assessee is running kuri business. Hence, it is a profit making activity and not incidental to the attainment of the objects of the Trust. By applying income from kuri business for charitable purposes, the assessee cannot say that its prime object is to give relief to the poor. In our opinion, the CIT(E) is justified in setting aside the assessment order as erroneous and prejudicial to the interests of the Revenue with a direction to the Assessing Officer to redo the same after giving sufficient opportunity of being heard to the assessee. Appeals of the assessee is dismissed.
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