M/S. LONG LIFE REALTORS LLP,MUMBAI vs. PR. CIT -17, MUMBAI

ITA 525/MUM/2021Status: DisposedITAT Mumbai05 April 2022AY 2016-1711 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the AO had conducted sufficient inquiries and accepted the assessee's claim based on the documents provided, including those showing the trust's eligibility and the amendment removing the need for renewal. The PCIT's invocation of Section 263 was deemed unjustified as it was based on a lack of inquiry, not inadequate inquiry.

What were the facts?

The assessee claimed weighted deduction for a donation made to a research trust. The Assessing Officer (AO) accepted the claim after verifying documents, including notifications of the trust's eligibility. Later, the Principal Commissioner (PCIT) invoked revisionary powers under Section 263, citing a CBDT instruction about a bogus donation racket and alleging lack of proper inquiry by the AO.

What were the issues?

Whether the PCIT was justified in invoking revisionary jurisdiction under Section 263 when the AO had conducted inquiries and accepted the assessee's claim for weighted deduction based on provided documents.

Which sections of the Income-tax Act were involved?

Section 35(1)(ii),Section 143(2),Section 142(1),Section 133(6),Section 263,Section 143(3)

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Income Tax Appellate Tribunal, ‘A‘ BENCH

For Appellant: Shri Sanjay C. Shah & Ms. Kinisha
For Respondent: Shri Salil Mishra
Hearing: 29/03/2022Pronounced: 05/04/2022

PER M. BALAGANESH (A.M): This appeal in ITA No.525/Mum/2021 for A.Y.2016-17 preferred by the assessee against the revision order of the Pr. Commissioner of Income Tax, Mumbai-17 in appeal dated 23/02/2021 u/s.263 of the Act.

2.

The only issue to be decided in this appeal is as to whether the ld PCIT was justified in invoking revisionary juri iction u/s 263 of the Act in the facts and circumstances of the instant case.

2 M/s.Long Life Realtors LLP

3.

We have heard the rival submissions and perused the materials available on record. We find that the return of income for the Asst Year 2016-17 was filed by the asse

The order continues below.

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