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2018 (10) TMI 716

Revision u/s 263 - AO denied exemption under Section 10(20) - total income was determined at Nil by observing that the loss could not be carried forward for set off against the income of the later years on the premise that the loss return filed by the assessee was not within the time prescribed under Section 139(1) - Held that:- In the original assessment, the AO determined total income at Nil and did not allow carry forward of loss computed at ₹ 382.09 crore. It is a matter of record that pursuant to the revisionary order, the Assessing Officer again took up the assessment under Section 143(3)/147 read with section 263 of the Act and passed a fresh assessment order on 27.12.2017 determining the total income at Rs. Nil and did not all .....

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al by the assessee arises out of the order dated 30.03.2017 passed by the Pr. CIT under Section 263 of the Incometax Act, 1961 (hereinafter also called the Act ) in relation to the assessment year 2012-13. 2.1. Briefly stated the factual matrix of the case is that the assessee did not furnish return of income within the time allowed under Section 139(1) of the Act. Notice was issued under Section 142(1), requiring the assessee to file return. Thereafter, the assessee furnished return on 10.11.2014 declaring business income of ₹ 20,64,84,209/-, which was claimed as exempt income under Section 10(20) of the Act. The Assessing Officer held that the assessee was not entitled to exemption under Section 10 of the Act. During the course of a .....

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ide the assessment order and remitted the matter to the file of the Assessing Officer with a direction to make fresh verification on the points given in the impugned order. The assessee is in appeal before the Tribunal against the revisionary order. 3. We have heard the rival submission and perused the relevant record. Section 263 of the Act empowers the CIT to revise an assessment order which is erroneous and prejudicial to the interest of Revenue. Twin conditions set out in the section, viz, the assessment order, being, erroneous and prejudicial to the interest of the Revenue, must co-exist so as to clothe CIT with the revisionary power. It is the trite law that if only one of the conditions is fulfilled in a particular case, it goes out .....

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impugned order, remain at Nil income, and in both the situations, there is no carry forward of loss. In other words, the shortcomings noticed by the ld. CIT in assessment order, which in his opinion made the order erroneous, are tax neutral. In the circumstances as are instantly obtaining, variation in the amount of loss, without allowing any carry forward to subsequent year(s) for set off, is in no way prejudicial to the interest of the Revenue. Since the original assessment order in the instant case satisfies, at the most, the first condition under Section 263 of the Act, being erroneous from the stand point of the ld. CIT, it fails to satisfy the second condition of being, prejudicial to the interest of the Revenue. In such circumstances .....

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