High Court of Delhi was dealing with the petition filed challenging the order passed by Delhi Bench 'A' of Income Tax Appellate Tribunal for the Assessment Year 2014-15.
Appellant’s Contention:
Learned counsel for the Appellant stated that the ITAT has erred in overlooking the fact that the Assessing Officer had passed the original assessment order without making the required enquiry for verifying the claims made by the assessee, which had been described in detail by Commissioner of Income Tax (Exemptions) in the order, undoubtedly making the assessment order erroneous and also prejudicial to the interest of revenue, thus bringing the assessment order under the purview of Section 263 of the Income Tax Act, 1961.
HC’s Observations and Held:
After hearing both the sides Court found that the ITAT in the impugned order has given detailed reasons as to why the exercise of jurisdiction by the Commissioner of Income Tax (Exemptions) under Section 263 of the Act was not warranted in the present case.
HC observed that the Court is in agreement with the findings recorded by the ITAT that since the total receipts of fees had been disclosed in the income and expenditure account, the same cannot be considered as unaccounted income in the hands of the assessee. HC opined that the ITAT has correctly held that the Assessing Officer did not make any addition against the assessee on account of interest as well as cost of acquisition because the same were considered and added in the original assessment.
HC stated that it is settled law that an appeal under Section 260A of the Act is to be entertained only when it directly and substantially affects the rights of the parties or is not free from difficulty or call for discussion of alternative views or the factual finding is perverse. It is further settled law that any interference with the finding of the fact is not warranted if it involves re-appreciation of evidence.
Bench: Hon'ble Mr. Justice Manmohan and Hon'ble Mr. Justice Sudhir Kumar Jain
Case Title: Commissioner of Income Tax (Exemptions) Delhi v. M/S Shugan Chandra Kothari Trust
Case Details: ITA 146/2021
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