Paradip Port Authority Vs DCIT (ITAT Cuttack)
ITAT Cuttack held that revisionary proceedings under section 263 of the Income Tax Act is liable to be quashed since assessee is entitled for exemption u/s. 11 and hence twin conditions are not satisfied in as much as there is no loss of revenue.
Facts- The assessee trust originally filed an application on 28.03.2006 for registration as a charitable or religious trust or institution u/s.12AA of the Act. The said application was dismissed by the CIT. ITAT restored the matter to the CIT for a fresh adjudication. Thereafter the ld. CIT(E), Hyderabad vide order dated 23.03.2017 has granted registration to the assessee u/s.12A of the Act w.e.f. 01.04.2002.
After receiving the order of granting exemption w.e.f 01.04.2002, the assessee filed revised returns for all the three years claiming exemption u/s.11 of the Act. The said revised returns were not admitted by the AO as they were barred by limitation and finally this issue was decided by the Hon’ble High Court of Orissa vide its order dated 12.07.2022, wherein the Hon’ble High Court has held that the revised return should be admitted as the period of delay is beyond the control of the assessee and should be ignored. Consequent upon the order of the Hon’ble High Court of Orissa, the AO passed the order u/s.260 of the Act, dated 10.10.2022 and assessed the income of the assessee for the three years at Nil after allowing the exemption u/s.11 of the Act.
