Himachal Shiksha Vikas Dharmarth Sanstha (REGD), Subathu V. The commissioner of Income Tax (Exemptions), Chandigarh

ITA 423/CHANDI/2022

AI Insights

The case involved an appeal by Himachal Shiksha Vikas Dharmarth Sanstha against an order from the CIT (Exemptions), Chandigarh, concerning the assessment year 2017-18. The primary contention in the appeal was related to the invocation of Section 263 by the CIT, which deemed the assessment order under Section 143(3) as erroneous and prejudicial to the interest of the revenue. The CIT's order suggested that there was a lack of proper enquiries or verification in the assessment, particularly concerning an addition of Rs. 74,57,430 to the building account. The assessee argued that this amount was not spent from the building fund collected in the current assessment year, a point previously unchallenged in earlier assessments. However, before the tribunal could hear the appeal, the department, after re-assessing under Section 143(3) read with Section 263 and Section 148B, ruled in favor of the assessee, leading to the withdrawal of the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 127476 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-05-2023
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: A
• Next Hearing Date: 09-05-2023
• Assessment Year: 2017-2018
• Appeal Filed On: 09-05-2022
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Revision of order
• Section: 263; 143(3); 143(1)

Judgement Text

आयकर अपील य अ धकरण,च डीगढ़ यायपीठ , च डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH ‘A’ CHANDIGARH BEFORE: SHRI A.D.JAIN, VICE PRESIDENT AND SHRI VIKRAM SINGH YADAV, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 423/CHD/2022 नधा रण वष / Assessment Year : 2017-18 Himachal Shiksha Vikas Dharmarth Sanstha (Regd), Village Khaltu, Kuthar Road, Subathu (HP). बनाम VS The CIT (Exemptions), Central Revenue Building, Sector 17, Chandigarh. थायी लेखा सं./PAN /TAN No: AAATH1783K अपीलाथ /Appellant यथ /Respondent नधा रती क ओर से/Assessee by : Shri A.K.Sood, C.A. राज व क ओर से/ Revenue by : Shri Vivek Nangia, CIT-DR तार"ख/Date of Hearing : 10.05.2023 उदघोषणा क तार"ख/Date of Pronouncement : 10.05.2023 आदेश/ORDER PER A.D.JAIN, VICE PRESIDENT This is assessee's appeal for assessment year 2017-18 against the order dated 22.03.2022 passed by the ld. CIT(Exemptions) Chandigarh. 2. The ld. counsel for the Assessee has filed a Miscellaneous Application seeking permission to withdraw the appeal. The contents of the withdrawal application are reproduced hereunder: Respectfully submitted as under:- 1. That the assessee filed the above appeal before the Hon'ble Bench A of ITAT, Chandigarh on 10-05-2022 and the following grounds of appeal were taken:- I. That the worthy Pr Commissioner of Income Tax-I, Chandigarh has erred in invoking provisions of Section 263 by holding that the Assessment Order passed u/s 143(3) dated 14.09.2017 is erroneous and prejudicial to the interest of revenue and has been issued without making proper enquiries or verification and by disallowing addition ITA 423/CHD/2022 A.Y.2017-18 Page 2 of 2 of Rs. 74,57,430/- in capital additions to Building account on the arbitrary assumption that the said amount has been spent from the building fund collected in earlier years, whereas no building fund has been collected in the current assessment year. II. The order u/s 263 suffers from judicial inconsistency as all previous orders whether u/s143(3) or u/s 143(1) has been passed when these building funds were collected in the respective years without any adverse inference on Building Fund. III. For these and other reasons that may be urged at the time of hearing the applicant prays for relief. 2. That the above said appeal has been fixed for hearing on 03-05-2023. 3. In response to orders u/s 263 dated 22.03.2022, the department initiated proceedings u/s 143(3) r.w.s 263 and .passed orders u/s 143(3) r.w.s 263 read with Section 148B of the IT Act dated 13.03.2023 deciding the issue raised in orders u/s 263 dated 22.03.2022 in favour of the assessee society. 4 In view of the above, the assessee Society may be permitted to withdraw the appeal filed before the Hon'ble A Bench of ITAT on 10.05.2022. 3. The ld. DR has posed no objection to the request of the assessee. 4. In view of the above facts and circumstances, the appeal of the assessee is dismissed as withdrawn. Said order was pronounced in the Open Court at the time of hearing itself. 5. In the result, the appeal of the assessee is dismissed as withdrawn. Order pronounced in the Open Court on 10 th May,2023. Sd/- Sd/- (VIKRAM SINGH YADAV) (A.D.JAIN ) ACCOUNTANTMEMBER VICE PRESIDENT “Poonam” आदेश क琉 灹ितिलिप अ灡ेिषत/ Copy of the order forwarded to : 1. अपीलाथ牸/ The Appellant 2.灹瀄यथ牸/ The Respondent 3.आयकर आयु猴/ CIT4.िवभागीय 灹ितिनिध, आयकर अपीलीय आिधकरण, च瀃डीगढ़/ DR, ITAT, CHANDIGARH 5.गाड榁 फाईल/ Guard File आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar