Grant Medical Foundation Vs CIT Exemption (ITAT Pune)
ITAT Pune held that revisionary proceedings under section 263 of the Income Tax Act rightly invoked since AO failed to make necessary enquiries and verification. Accordingly, revisionary proceedings upheld and appeal of assessee dismissed.
Facts- The assessee is a registered trust. It also qualifies for exemption u/s 10(23C)(via) of the Act vide order of the Chief Commissioner of Income Tax, Pune dated 30.10.2009. AO passed the order u/s 143(3) r.w.s 143(3A) & 143(3B) of the Act on 08.04.2021 determining total income at Nil after making addition of Rs.7 crores on account of non corpus donation and disallowance of depreciation of Rs.33,00,69,972/-. However, since after making the above additions and after allowing the accumulation u/s 11(1)(a) of the Act to the extent of 15% of gross receipts at Rs.73,63,65,615/-, the net surplus was Nil for which the Assessing Officer determined the taxable income at Nil.
CIT(E) noted that order passed by the Assessing Officer is erroneous as well as prejudicial to the interest of Revenue. Being aggrieved by the said order of CIT(E), the present appeal is filed.
Conclusion- Since the Assessing Officer has not made any enquiry with respect to the above transaction especially the role of M/s. Aarti Enterprises in sharing money with the owner of machinery Dr. M.S. Hiremath, who is the specialist doctor with the assessee, therefore, the order passed by the Assessing Officer, in our opinion, has become erroneous and prejudicial to the interest of Revenue.
