C.B. MUBARKA CHARITABLE TRUST,MUMBAI vs. CIT (EXEMPTION), MUMBAI

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ITA 638/MUM/2021Status: DisposedITAT Mumbai03 August 2022AY 2016-177 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the AO had passed the assessment order without basic verification of the excess expenditure claimed from the corpus fund, which was not allowable. Therefore, the Pr.CIT rightly directed the AO to re-do the assessment.

What were the facts?

The assessee trust filed a return declaring nil income. The Assessing Officer (AO) completed the assessment under Section 143(3). Subsequently, the Principal Commissioner (Pr.CIT) initiated proceedings under Section 263, observing that the AO's order was erroneous and prejudicial to revenue due to non-verification of significant expenditure incurred from the corpus fund.

What were the issues?

Whether the Assessing Officer's assessment order was erroneous and prejudicial to the interest of revenue due to lack of verification of expenditure from the corpus fund. Whether the Pr.CIT was justified in invoking Section 263 powers.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263,Section 11

AI-generated summary — verify with the full judgment below

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Income Tax Appellate Tribunal, “C” BENCH, MUMBAI

Before: SHRI VIKAS AWASTHY & SHRI AMARJIT SINGH

Hearing: 23.05.2022Pronounced: 03.08.2022

आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपीलाथी / The Appellant 2. प्रत्यथी / The Respondent. 3. संबंधधत आयकर आयुक्त / The CIT(A) 4. आयकर आयुक्त(अपील) / Concerned CIT धिभागीय प्रधतधनधध, आयकर अपीलीय अधधकरण, अहमदाबाद / DR, ITAT, Mumbai 5. 6. गार्ड फाईल / Guard file.

आदेशानुसार/BY ORDER, सत्याधपत प्रधत //True Copy//

(Asst. Registrar) ITAT, Mumbai

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