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TMI Blog2021 (12) TMI 1065X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order passed by the Joint Commissioner of Income-tax, Palampur range, under section 143(3)/147 of the Income-tax Act, 1961 (for short "the Act") for the assessment year 2011-12, exercising jurisdiction under section 263 of the Act. 2. Brief facts of the case are that the assessee-trust registered under section 12AA(1)(b) of the Act, filed its return of income for the assessment year under consideration declaring nil income. The return was processed under section 143(1) of the Act. Thereafter the case was reopened for conducting enquiry regarding Indian and foreign currency seized in January 2011 by Una Police. Accordingly, notice under section 148 of the Act was issued to the assessee by the Income-tax Officer Dharamshala. Ther ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore us that the impugned order passed by the learned Commissioner of Income-tax (Exemptions) is against the facts and law as there is no justification in holding the assessment order passed under section 143(3)/147 erroneous and prejudicial to the interests of the Revenue. The learned counsel further contended that the learned Commissioner of Income-tax (Exemptions) has wrongly held that the Assessing Officer has passed the assessment order without proper enquiry and due application of mind. The learned counsel further pointed out that the learned Commissioner of Income-tax (Exemptions) has not given any finding as to how the order is erroneous and prejudicial to the interests of the Revenue. The learned submitted that the case of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed representative attended the proceedings from time-to-time and filed written submissions. The learned counsel further invited our attention to the copy of reply dated June 3, 2013 filed by the assessee before the Additional Commissioner, Palampur. So far as the enquiry regarding foreign currency seized is concerned, the learned counsel pointed out that the competent authority has held that the assessee-trust had no role in acquiring the foreign currency in question. The learned counsel further contended that the action of the learned Commissioner of Income-tax (Exemptions) is contrary to the law laid down by the hon'ble Delhi High Court in the case of DIT (Exemptions) v. Maharaja Agarsen Technical Education Society [2010] 328 ITR 551 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is no merit in the appeal filed by the assessee, the same is liable to be dismissed. 6. We have heard the rival submissions of the parties. As pointed out by the learned counsel, the learned Commissioner of Income-tax (Exemptions) has revised the assessment order holding that the Assessing Officer has decided the matter in favour of the assessee without going deep into the issue regarding seized foreign currency and excess income of Rs. 2.30 crores over total expenditure. In response to the notice under section 263 of the Act the assessee submitted that the competent adjudicating authority has given clean chit to the assessee-trust by dropping the charges under Foreign Exchange Management Act, 1999 against the assessee-trust Regarding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ow the assessment order is erroneous. The learned Commissioner of Income-tax (Exemptions) has not pointed out any evidence or cogent reason to hold that the assessee-trust has received anonymous donation. In the case of Malabar Industrial Co. Ltd. v. CIT (supra), the hon'ble Supreme Court has held that the Commissioner of Income-tax has to be satisfied of twin conditions, namely, that the order sought to be revised is erroneous and that the order is prejudicial to the interests of the Revenue. The hon'ble court further held that the power under section 263 cannot be invoked to correct each and every type of mistake committed by the Assessing Officer. The hon'ble court further held that the phrase prejudicial to the interests of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ance Ltd. (supra) the hon'ble Supreme Court has held that where jurisdiction under section 263 is sought to be exercised with reference to an issue which does not form the subject matter of reassessment, the period of limitation period of two years commences from the date of the original assessment and not from the reassessment In the present case, the assessment-order was passed in the year 2013 and the learned Commissioner of Income-tax (Exemptions) issued notice under section 263 of the Act on March 11, 2016 Hence, the action of the learned Commissioner of Income-tax (Exemptions) is bad in law Similarly, in the case of CIT v. ICICI Bank Ltd. (supra), the hon'ble Bombay High Court has held that where the Commissioner exercises jur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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