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2023 (3) TMI 975 - AT - Income TaxRevision u/s 263 - As per CIT-E AO did not examine the claim of the assessee for an exemption u/s. 11 - HELD THAT:- It is not the right reason for exercising revisionary powers u/s. 263 of Act, for the reason that the assessee in response to AO’s specific query has substantiated by submitting various documents that the main objects of the trust is relief of the poor, small and marginal farmers which it is covered by Circular No. 11/2008 and the AO based on the submissions made has taken a conscious decision to accept the claim of the assessee. In our view the error envisaged by Section 263 of the Act is not one that depends on possibility as a guess work, but it should be actually an error either of fact or of law. We are of the opinion that the PCIT in the present case has wrongly invoked the jurisdiction under section 263 and the controversy in the present case is fully covered by the judgment in the case of Gabriel India Ltd. [1993 (4) TMI 55 - BOMBAY HIGH COURT]. Accordingly the impugned order of the PCIT with regard to the issue of setting aside the order of AO u/s.143(3) with regard to this issue is quashed. Appeal of assessee allowed.
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