TMI Blog2010 (11) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... t the income of the petitioner was not exempted from tax under Section 10 (23C)(iv) of the Act and, therefore, we are of the view that the order dated 20.6.2008 of the Additional Commissioner of Income Tax, Range Bulandshahar cannot be said to be erroneous and prejudicial to the interest of the revenue. The phrase "prejudicial to the interests of the Revenue" in Section 263 of the Act has to be read in conjunction with the expression "erroneous" order passed by the Assessing Officer - Malabar Industrial Co. Ltd. v. Commissioner of Income Tax, reported in [2000 -TMI - 5786 - SUPREME Court] - 724 of 2009 - - - Dated:- 11-11-2010 - Yatindra Singh, Rajes Kumar, JJ. By means of the writ petition the petitioner is challenging the notic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d a school, whose income is exempt under Section 10 (23C)(iv) of the Act. The Society is duly registered under the Societies Registration Act. The impugned notice dated 2.1.2009 under Section 263 of the Act has been issued on the ground that the Society received accommodation entries amounting to Rs.3,00,750/- and during the assessment proceeding no inquiry was conducted about the identity and creditworthiness of the donors and genuineness of these donations. Thus, the order passed by the Additional Commissioner of Income Tax, Range Bulandshahar, appears to be erroneous and prejudicial to the interest of revenue. Heard Sri R.R. Agrawal, counsel for the petitioner and Sri Dhananjay Awasthi, standing counsel, for the respondents. The couns ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order, therefore, the Commissioner of Income Tax has rightly initiated the proceeding under Section 263 of the Act. We have considered the rival submissions and the relevant documents. The order, which is sought to be revised under Section 263 of the Act is the order dated 20.6.2008 passed by the Additional Commissioner of Income Tax, Range Bulandshahar. A perusal of the order reveals that the assessing authority has assessed nil total income on the ground that the assessee was imparting education and its income was exempted from tax under Section 10 (23C)(iv) of the Act. In the impugned notice, under Section 263 of the Act, it has not been disputed that the income of the petitioner was not exempted from tax under Section 10 (23C)( ..... X X X X Extracts X X X X X X X X Extracts X X X X
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