INCOME TAX ACT, 1961

Section 263 Section 13(9) Section 11

Revision under section 263 - Erroneous and prejudicial order - AO taking possible view -

CIT noticed that return of income as well as Form 10 have been filed belatedly, however, AO allowed assessee's claim of exemption under section 11. Accordingly, CIT treated assessment order as erroneous and prejudicial to the revenue alleging contravention of section 13(9). Held: AO in his order passed under section 143(3) on 31-10-2018 had considered each and every aspect of the issue. In fact, return of income was filed on 20-10-2016 declaring Nil income and this was in time. Assessee filed revised return of income on 29-11-2017 and this was selected for scrutiny. CIT(A) while condoning delay in filing of Form 10 under section 119(2)(b), was aware of all these circumstances. As original return was filed in time and delay in filing of Form 10 was condoned by CIT(E), the twin conditions mentioned under section 13(9) were satisfied. It was not the case of assessee that original return of income was not filed within due date of filing as specified under section 139(1). AO had considered legal position and had taken a possible view after application of mind and was bound to consider original return of income which was filed in time as well as Form 10 filed after condonation of delay by CIT(E) and to grant exemption to assessee. Thus, AO took a possible view. Such view could not be considered as erroneous and prejudicial.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2016-17

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