COMMISSIONER OF INCOME TAX EXEMPTIONS MUMBAI vs IMPACT FOUNDATION INDIA AY 2017-18

Judgment text excerpt

ITXA 126-24(1)..DOC LAXMI SUBHASH SONTAKKE Digitally signed IN THE HIGH COURT OF JUDICATURE AT BOMBAY by LAXMI SUBHASH SONTAKKE ORDINARY ORIGINAL CIVIL JURISDICTION Date: 2026.05.04 17:10:18 +0530 INCOME TAX APPEAL NO. 126 OF 2024 Commissioner of Income Tax (Exemptions), Mumbai ...Appellant Versus Impact Foundation (India) ...Respondent _______ Mr. Pritish Chatterjee for the Appellant. Mr. Dharmesh Shah a/w Dhaval Shah for the Respondent. _______ CORAM: G. S. KULKARNI & AARTI SATHE, JJ. RESERVED DATE: 24 APRIL 2026 PRONOUNCED ON: 04 MAY 2026 JUDGMENT (PER AARTI SATHE, J.):- 1. This Appeal has been filed by the Appellant-Revenue under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as “the Act”), challenging the order dated 2nd January 2023 (hereinafter referred to as the “impugned order”) passed by the Income Tax Appellate Tribunal (hereinafter referred to as the “ITAT”), allowing the Respondent-Assessee’s Appeal, which was filed against the order dated 24th March 2022 passed by the Commissioner of Income Tax (Exemptions), Mumbai (hereinafter referred to as the “CIT (Exemptions), Mumbai”), thereby holding that the order passed by the CIT (Exemptions), Mumbai under Section 263 of the Act was not sustainable. The assessment year (AY) in question is AY 2017-2018. By the present Appeal, the Appellant-Revenue has raised the following re-framed questions of law:- Page 1 of 29 Laxmi ITXA 126-24(1)..DOC “1. Whether the Hon'ble ITAT was justified in allowing the appeal, when the order revised did not make any inquiries and verification with regard to claim of utilization of accumulated income of Rs 6 crores under section 11(2) thereby rendering the assessment order erroneous and prejudicial to the interest of revenue? 2. Whether the Hon'ble ITAT was justified i