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2022 (5) TMI 96 - AT - Income TaxRevision u/s 263 - Existence of corpus fund and investments in land and buildings - HELD THAT:- CIT DR has not controverted the fact that during the financial period, the assessee did not receive any corpus donation and did not purchase or acquire any land, therefore, no enquiry was required to be made in this regard and thus, the observations made by the CIT in the notice u/s. 263 of the Act and in the impugned order are clearly irrelevant and incorrect factual position of the assessee case. In view of CBDT Circular dated 14.9.1990 (supra) the corpus donation cannot be treated as income of the trust. This proposition has been rendered by Hon'ble Supreme Court in the case of Mata Amrithanandamayi Math Amritapuri [2018 (5) TMI 1028 - SC ORDER] therefore, the observation of Ld. CIT(E) in the notice u/s. 263 of impugned order are clearly an outcome of consideration of irrelevant and incorrect factual position keeping aside Board Circular (supra). We also observe that CIT(E) submitted that the assessee has not submitted any reply either to show cause notice or in response to the opportunity accorded to it. AR has successfully demonstrated that the assessee filed reply to the show cause notice dated 26.3.2021 and no further opportunity beyond 30.3.2021 was given to the assessee. Therefore, these observations of the CIT(E) are also not sustainable in law. CIT is required to direct the AO only after coming the conclusion that the earlier finding of the ITO was erroneous and prejudicial to the interests of the revenue. In the present case, the Ld. CIT(E) has taken into consideration the incorrect and irrelevant facts to allege that there is no enquiry by the AO and thus the impugned assessment order is erroneous and prejudicial to the interest of the revenue without considering the reply of the assessee to show cause notice u/s. 263 of the Act and keeping aside the basic principles of tax jurisprudence relevant for assessing income of a charitable trust. We, therefore, in view of foregoing discussion, reach to a logical conclusion and compelled to hold that the revisionary order passed u/s. 263 of the Act by the Ld. CIT(E) is not sustainable and valid. - Decided in favour of assessee.
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