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Whether the Tribunal was correct in holding that the Assessing Officer was justifying in dropping the reopened assessments under an order dated 15-3-2005 without recording any reasons by recording its own reasons for the first time in its order presuming the reasons on which the Assessing Officer would have passed an order?

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Sec. 263 of the Income-tax Act, 1961 - Revision - The proceedings under section 263 of the Act were brought after taking into account factual aspect. In the order passed by the CIT(A) as well as section 11(1)(d) of the Act, the finding has been recorded that amount in question is part of corpus fund. Thus, the assessee submitted that proceedings under section 263 of the Act were ab initio void and the tribunal has passed a reasoned order, which does not call for any interference. High Court dismissed the appeal of the revenue holding that “The Director of Income-tax (Exemptions) has not found anything wrong in the accounts for the Assessment year 1997-98. It is pertinent to mention here that view taken by the Assessing Officer is one of the two plausible views and therefore, in view of law laid down by the Supreme Court in the case of Malabar Industrial Co. Ltd., (supra), the proceeding under section 263 of the Act cannot be upheld. The Tribunal has therefore, rightly set aside the proceeding under section 263 of the Act initiated against the assessee”. - CIT V/s INTERNATIONAL SOCIETY FOR KRISHNA CONSCIOUSNESS - [2020] 272 TAXMAN 534 (KARN)