TMI Blog2019 (9) TMI 1651X X X X Extracts X X X X X X X X Extracts X X X X ..... t the contributions made by M/s. LEBARA Ltd., are not taxable in the hands of the assessee since the same were assessed to tax in the hands of M/s. A.R. Rahaman Foundation. It is a matter of record that even the Ministry of Home Affairs, Government of India, had accorded post facto approval in respect of this contribution. There is nothing on the record suggesting that it is taxable in the hands of the assessee. In these circumstances, we are of the considered opinion that the re-assessment order cannot be held to be erroneous and prejudicial to the interest of Revenue so as to enable the Ld. CIT(A) to exercise the power of revision u/s.263. Therefore, the Principal CIT was not justified in exercising the power of revision u/s.263. Appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a purpose of making and addition in a predetermined manner even without enquiry. 4) The Principal Commissioner of Income Tax, Central-2 failed to see that the appellant had only come forward and as a means of quid-prop-quo, rendered free service to Lebara Mobile in turn for the generous contribution given by Lebara Mobile to A.R. Rahman Foundation. The learned Principal Commissioner of Income tax, Central-2 failed to appreciate the Duke of Westminster principles and the dictum laid down by the Apex court in Calcutta Discount case. 5) The learned Principal Commissioner of Income Tax, Central-2 ought to have seen that the Assessing Officer in its reassessment proceedings, after due enquiry has consciously not assessed the imp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee and considered the fact that the contributions were assessed in the hands of M/s. A.R. Rahaman Foundation, the AO had chosen not to make any addition. Subsequently, the Principal CIT, Chennai-2, issued a show cause notice dated 13.02.2018 u/s.263 of the IT Act calling upon the assessee to show cause as to why the re-assessment order dated 28.03.2016 cannot be set aside as the AO had failed to consider and examine the relevant clauses of the agreement between the M/s. A.R. Rahaman Foundation and M/s. LEBARA Ltd., which clearly establishes that the assessee had received the remuneration towards his professional services. Accordingly, the Ld. CIT(A) has set aside the re-assessment order dated 28.03.2016 by holding that the Assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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