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TMI Blog2015 (10) TMI 2113X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of Income-tax Officer, Range -1, dated 26.12.2011 for A.Y.1996-97 passed in consequence to the remand order of the Hon'ble Income-tax Appellate Tribunal dated 20.09.2010 for computation of exemption under section 11 of the Income-tax Act, "is erroneous in so far as it is prejudicial to the interests of revenue." 2. BECAUSE the Ld. Commissioner of Income-tax-I has erred in law and on facts in holding that the Assessing Officer has wrongly allowed deduction of 25% of income derived from property held in trust i.e. Rs. 9,53,13,423/- under section 11(1) (a) and further allowed deduction of Rs. 28,59,40,269/- under section 11 (2) of the Act in consequence to the direction of the Tribunal in the remand order. 3. BECAUSE the Ld. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ealt with the objections/explanation of the appellant. 7. BECAUSE the Ld. Commissioner of Income-tax-I has erred in law and on facts in not appreciating the fact that as per Instruction No. 7 of 2011 dated 24.5.2011 issued by the CBDT, assessments in consequence to the remand orders of the Tribunal are monitored by the Commissioner himself vide relevant para-5 ((iv) of the Instruction as quoted below:- "Appeal effect should be particularly monitored by the CIT in the cases in r which the ITAT has decided certain issues in favour of the assessee and set aside/remanded back other issues to the Assessing Officer. The set aside issues must be decided on priority." 8. The appellant most humbly prays that the Hon'ble Tribunal may graci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uncements: (i) Gee Vee Enterprises vs. Addl. CIT [1975] 99 ITR 375 (Del) (ii) Jagdish Kumar Gulati vs. CIT [2004] 269 ITR 71 (All) 5. We have considered the rival submissions. We find that as per the notice issued by learned CIT u/s 263, available on page No. 11 of the paper book, this is the stand of learned CIT that there is observation by Assessing Officer in the assessment order passed by him u/s 144/254/251/143(3) of the Act dated 26/12/2011 in sub Para of Para 3 that the entire income of the assessee corporation was not found exempt u/s 11 of the Act but even after making this observation in this Para, while computing the income of the assessee corporation, the Assessing Officer has allowed deduction u/s 11 of the Act of Rs. 953.13 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in our considered opinion, there is no infirmity in the order of learned CIT u/s 263 as per which he has asked the Assessing Officer to pass de novo assessment order after due and proper examination of the issue and after affording a fair and reasonable opportunity of being heard to the assessee. 6. Now we examine the applicability of various judgments cited by Learned A.R. of the assessee. 6.1 The first judgment cited by Learned A.R. of the assessee is a Tribunal order in the case of Cargo Handling (P.) Workers Pool (supra). We find that although reliance was placed by Learned A.R. of the assessee on this Tribunal decision but it was not pointed out as to in support of what contention, reliance is placed on this Tribunal decision. We fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income of the assessee is not exempt u/s 11 and even after making this observation in the assessment order, he has allowed two huge amounts u/s 11 of the Act and under these facts, it was held by learned CIT in the impugned order passed by him u/s 263 that the order of the Assessing Officer is erroneous as well as prejudicial to the interest of Revenue. When the Assessing Officer has himself observed in the assessment order that the entire income of the assessee is not exempt u/s 11 then there was no basis for his action to allow any deduction u/s 11 and under these facts, this judgment of Hon'ble Apex Court is not applicable and it does not render any help to the assessee. 6.3 The next judgment cited by Learned A.R. of the assessee i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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