Income Tax Act, 1961

Section 263

Revision under section 263 - Erroneous and prejudicial order - Alleged lack of enquiry on AO's part - Thorough enquiry conducted by AO

CIT held assessment order as erroneous and prejudicial to the interests of Revenue under section 263 on the ground that AO failed to make any enquiry about source of funds being received from abroad, true existence of donor entity in the principality of Liechtenstein and activities undertaken by said foundation abroad. Held: A perusal of questionnaire raised by AO showed that AO had called for minute detail as to the activities being carried out by assessee-trust with complete details of each trustee/member, return of income and revised return if any for the last two years, receipt and payment account, income and expenditure account, etc., complete details of persons who have been given fee concessions/ grants/benefits/charity, etc., source and mode of donation with justification; detail of application/utilisation of income or property of the trust; and also detail of FCRA registration with FC-3 return. Assessee filed detailed reply to aforesaid questionnaire, along with requisite documents such as details regarding names, addresses of persons/organizations from whom assesse received grant/donation, chart showing the remittances received during the year, copy of bank advice along with relevant ledger account. All the remittances were received by trust in account with Indian Overseas Bank, New Delhi. The trust was duly registered with the Ministry of Home Affairs, Government of India under FCRA for foreign contribution and a copy of its registration, along with copy of r/c filed in FC-6, was also furnished. Thus, it was not a case of no enquiry rather thorough enquiry was conducted by AO by issuing a detailed questionnaire and assessment order framed after examining reply and documents furnished by assessee could not be held as erroneous and prejudicial merely on the basis of conjectures and surmises.

REFERRED :

FAVOUR : In assessee's favour

A.Y. : 2014-15

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