On appeal by the revenue the Court held that the Tribunal had recorded the finding that the Assessing Officer should have examined the claim for deduction of the assessee in the light of section 11. The Tribunal thereafter could not have proceeded to examine the matter on the merits after setting aside the order under section 263 of the Act with reference to section 13(8) of the Act as the merits of the matter were not the subject matter of the appeal before the Tribunal. The order of the Tribunal was liable to be quashed. The order passed by the Director (Exemptions), in so far as it contained a direction to the Assessing Officer to disallow the deduction under section 80IB(10) was also liable to be quashed. Matter remanded to the Assessing Officer. (AY.2009-10)
DIT(E) v. India Heritage Foundation (2020) 428 ITR 299 / 196 DTR 241 (Karn.)(HC) Editorial: All issues are open for consideration , India Heritage Foundation v. DIT (E) (2022)449 ITR 154 (SC)
S. 263 : Commissioner-Revision of orders prejudicial to revenue-Appellate Tribunal-Power-Revision on ground pf lack of enquiry by Assessing Officer-When the Tribunal agreeing with Commissioner, the Tribunal has no power to set aside the order, when it’s is not subject matter of appeal. [S. 11, 12AA, 3(8), 80IB(10), 254(1)]