St. Lawrence Education Trust Vs PCIT (ITAT Pune)
Section 263 Revision Valid Because Unsupported Cash Expenses Were Not Properly Examined: ITAT; ITAT Confirms PCIT’s Revisionary Powers Due to Inadequate Enquiry Into Expense Claims; Assessment Order Revised Under Section 263 Because Vouchers for Expenses Were Missing During Survey; ITAT Holds Assessment Erroneous Because Expenditure Verification Was Conducted Only Sample-Wise; Revision Under Section 263 Sustained Because Assessing Officer Failed to Fully Verify Cash Expenditure; ITAT Dismisses Trust’s Appeals Because Expense Claims Lacked Proper Supporting Evidence; Explanation 2 to Section 263 Applies Where Assessing Officer Fails to Conduct Necessary Enquiry: ITAT; ITAT Upholds Fresh Enquiry Direction Because Assessment Was Completed Without Full Expense Verification; Section 263 Action Upheld Because Assessing Officer Accepted Survey Disclosure Without Proper Verification.
The appeals before the Pune Bench of the Income Tax Appellate Tribunal concerned revisionary orders passed under Section 263 of the Income Tax Act for assessment years 2013-14 to 2017-18 against two assessees. Since the facts and issues involved in all ten appeals were identical, the Tribunal disposed of them through a common order.
The lead matter related to a trust engaged in imparting education and registered under Section 10(23C)(vi) of the Income Tax Act. The trust had filed its return declaring nil income after claiming exemption under Section 10(23C)(vi). The original assessment under Section 143(3) was completed accepting the returned income.
