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2023 (5) TMI 784 - AT - Income TaxValidity of order of the National Faceless Appeal[CIT] Centre passed u/s 250 - Correct tax liability of the assessee - assessee has been doubly taxed - assessee was a unit of “Kabir welfare trust” which was registered under Societies Registration Act as registered u/s 12AA - assessee polytechnic being part/unit of the Kabir welfare trust, hence, its income and financial transactions have been duly included and taken care of in the return of income filed by the Kabir welfare trust, which has already been assessed u/s 143(3) - HELD THAT:- It has been held time and again that the Income Tax authorities should charge only legitimate taxes from the assessee. At both the stages, either by the Appellate Assistant Commissioner or before the Appellate Tribunal, the appellate authority can consider the proceedings before it and the material on record before it for the purpose of determining the correct tax liability of the assessee. The Hon’ble full bench of the Bombay High Court in Ahmedabad Electricity Company Ltd.and Godavari Sugar Mills Ltd. [1992 (4) TMI 29 - BOMBAY HIGH COURT] that there was nothing in section 254 or section 251 which would indicate that the appellate authorities are confined to considering only the objections raised before them or allowed to be raised before them either by the assessee or by the department, as the case may be. They can consider the entire proceedings to determine the tax liability of the assessee. The issue is required to be examined at the end of the Assessing Officer. We, therefore, restore the matter to the file of the Assessing Officer with a direction that the Assessing Officer will examine the contentions of the assessee that the income declared by the assessee and taxes paid thereon have already been included and part of the income declared by the “Kabir welfare trust”. If the contention of the assessee that in the light of the above narrated facts and circumstances, there is a double taxation of the same amount, is found correct, the Assessing Officer will process the refund of the taxes paid by the assessee - the assessee will not be entitled to any interest on the refund amount upto 3 months from the date of receipt copy of this order. However, the assessee will be entitled to the interest on the refund as provided in the relevant provisions of the Income Tax Act after 3 months from the date of receipt copy of this order.
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