Assessee a non profit organization drives technology of services market by being a strategic advisor to IT industry. Assessee though registered under section 12A did not claim exemption under section 11 of the Act but claimed part of its income as exempt on the principal of mutuality. AO denied the benefit of mutuality. CIT(E) observed that assessee had not incurred any Global Trade Development (GTD) expenses in accordance with its objects and set aside the order under section 263. Tribunal held that CIT(E) did not make any independent enquiry with respect to admissibility of GTD expenses and did not undertake the exercise of required to reach a conclusion that the assessment order was erroneous. Hence, impugned order was quashed. (AY.2010-11)
National Association of Software and Services Companies (‘Nasscom’) v. CIT(E) (2019) 201 TTJ 39 / 56 CCH 532 / 181 DTR 73 (Delhi.)(Trib.)
S. 263 : Commissioner–Revision of orders prejudicial to revenue– Commissioner should make independent enquiries to reach a conclusion that the assessment order was erroneous and prejudicial to the interests of the revenue–In absence of independent enquiry, CIT(E) order set aside. [S. 11, 12, 28(iii), 143(3)]