Case Law Details
Madras Motor Sports Club (AOP) Vs CIT (ITAT Chennai)
ITAT Chennai held that revision order u/s. 263 unjustified and liable to be quashed as no findings which proves that there is a violation of the proviso to provision of section 2(15) of the Income Tax Act, 1961. Accordingly, exemption u/s. 11 rightly claimed.
Facts- The assessee, a Society registered under the Tamil Nadu Society Act, was established in the year 1953. The assessee, M/s. MADRAS MOTOR SPORTS CLUB, is a registered Public Charitable Trust, u/s. 12AA of the Act. The primary object of the assessee is to promote the sports of Motor Car and Motor Cycle Racing.
The assessee filed its return of income for A.Y. 2018-19 on 29.09.2018 which was subsequently revised on 06.10.2018. The assessee claimed exemption u/s. 11 of the Act. Accordingly, the AO framed assessment u/s. 143(3) r.w.s. 143(3A) & 143(3B) of the Act and verified the claim of exemption u/s. 11.
Subsequently, the CIT(Exemption) on perusal of income and expenditure account and proposal sent by the Range Head u/s. 263 of the Act on 31.03.2022, a show cause notice dated 06.03.2023 was issued with a proposal to revise the assessment framed by AO allowing the claim of exemption u/s. 11 of the Act. In view of the amended provisions of section 2(15) of the Act, which had not been examined by the AO and hence, the said order is prejudicial to the interest of Revenue as per CIT(Exemption).
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