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2021 (7) TMI 881 - AT - Income TaxRevision u/s 263 - assessee was selected for scrutiny assessment as per the “Computer Aided Scrutiny Selection” (‘CASS’) for two fold reasons, viz. (i). that the assessee trust had received substantial amount of foreign donations;and (ii). that the assessee trust had claimed to have incurred huge amounts on charity - HELD THAT:- We hold a strong conviction that in a case where the A.O in order to satisfy himself about the genuineness and veracity of a claim raised by the assessee had raised a query and called for certain details/information, then, the acceptance of such claim dehors furnishing of the reply and the requisite details that were called for by the A.O, can only be stamped as acceptance of the claim without making any verification. It can safely or in fact inescapably be gathered that it is not a case of an inadequate verification as had been canvassed by the ld. A.R, but a case where the assessee’s claim had been accepted without carrying out any verification. We are unable to persuade ourselves to subscribe to the claim of the ld. A.R that the CIT had exceeded his jurisdiction, and thus, had wrongly observed that as the A.O had accepted the assessee’s claim for expenditure of ₹ 11.88 crores without making necessary verifications, therefore, the order passed by him u/s 143(3), dated 28.06.2017 was erroneous in so far it was prejudicial to the interest of the revenue within the meaning of Sec. 263. A.O had failed to carry out verifications as regards the expenditurer claimed by the assessee to have been incurred towards furtherance of its objects, therefore, the order passed by him u/s 143(3), dated 28.06.2017 was erroneous in so far it was prejudicial to the interest of the revenue within the meaning of Sec. 263. We shall deal with the contention of the ld. A.R that now when the A.O had recognized the assessee’s right to exemption of income being a charitable institution, thus, in the absence of any prejudice cause to the revenue, the CIT was precluded from exercising his revisional jurisdiction. We have given a thoughtful consideration to the sad contention of the ld. A.R and are unable to persuade ourselves to subscribe to the same. As the assessee’s claim of having incurred the expenses towards furtherance of its charitable objective; and also its claim of having received donations, both local and foreign, had been accepted by the A.O without carrying out necessary verifications, therefore, the aforesaid contention of the assessee is devoid and bereft of any merit, and thus, cannot be accepted. No infirmity in the order passed by the CIT under Sec. 263 of the Act, wherein he had after rightly observing that the assessment order u/s 143(3), dated 28.06.2017 had been passed by the A.O in a perfunctory and routine manner without any verification, cross checks or test checks, had thus, set-aside the order with a direction to the A.O to conduct a fresh assessment, uphold his order - Decided against assessee.
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