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2021 (9) TMI 1118 - AT - Income TaxRevision u/s 263 - Exemption u/s 11 - certain payments out of trust money which were in violation of provisions of sections 11 to 13 - Trust has deviated from its core objective from promoting the education and has made it a commercial business by paying commission to agents by diverting the Trust funds for personal benefits of the Trustees - HELD THAT:- The order passed by the AO accepting the return of income does not make any reference to any of the arguments put forward on behalf of the assessee and has merely accepted the return of income filed by the assessee. In fact, the assessment of the sum of ₹ 10,34,000/- was on protective basis in the hands of Thomas P. John and therefore why substantive addition was not made on the assessee ought to have been set out by the AO in his Order of Assessment. As decided in INFOSYS TECHNOLOGIES LTD. [2012 (1) TMI 76 - KARNATAKA HIGH COURT] If the order of the AO does not disclose the basis of his conclusion, then jurisdiction u/s 263 of the Act can be ignored. Therefore, the CIT was justified in directing the AO to examine the allowability of these items of expenditure. The assessee is always at liberty to show as to how the material found in the survey was not sufficient to make any additions in the hands of the assessee. We, therefore, confirm the order of the CIT. - Decided against assessee.
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