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2024 (1) TMI 838 - AT - Income TaxRevision u/s 263 - assessment of trust - as per CIT(Exemptions), AO failed to carry out required enquiries he ought to have been carried out in light of objects and activities of the Trust and gross receipts earned by the Trust for the impugned assessment year - HELD THAT:- We find that when the AO has taken up the case for verification of expenditure incurred for charitable and religious purpose and further, during the course of assessment proceedings, he has called for various details about objects and activities of the Trust, financial statement, break up of income and expenditure, then, in our considered view, the Ld.CIT(Exemptions) cannot presume that, said information was not in the knowledge of the AO. This is because, the AO might have taken independent view de hors decision taken by the AO for earlier assessment years based on appraisal of relevant facts in light of objects and activities of the Trust. As res judicata is not applicable to the Income Tax proceedings. In other words, there is no rule that different view cannot be taken for subsequent years when a view has been taken for earlier assessment years. In our considered view, it is always possible to take a different view, in case, the facts brought on record is apprised in right perspective of law. Therefore, the arguments of the Ld.DR that the AO has failed to take note of earlier assessment orders while completing assessment is incorrect and not acceptable We are of the considered view that assessment order passed by the AO is neither erroneous nor prejudicial to the interest of the Revenue. First of all, the AO has considered the issue of exemption u/s. 11 of the Act, while completing assessment u/s. 143(3) of the Act, which is evident from the assessment proceedings, where, the AO has called for various details, and in reply, the assessee has submitted relevant details. The sole basis for the CIT(Exemptions) to invoke provisions of Sec.263 of the Act, is the decision of the Hon’ble Supreme Court in the case of ACIT(Exemptions) v. Ahmedabad Urban Development Authority (2022 (10) TMI 948 - SUPREME COURT] and in our considered view, said judgment cannot be applied retrospectively for earlier assessment year as clarified by the Hon’ble Supreme Court in their subsequent judgement dated 02.11.2022. Therefore, we are of the considered view that the Ld.CIT(Exemptions) is erred in invoking their jurisdiction and set aside the assessment order passed by the AO u/s. 263 of the Act and thus, we quash the order passed by the Ld.CIT(Exemptions) u/s. 263 of the Act. Appeal filed by the assessee is allowed.
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