JUDGMENT :

1. This appeal has been filed by the revenue to challenge the judgment of the Income-Tax Appellate Tribunal raising following questions for our consideration:

1. "Whether on the facts and circumstances of the case and law, the Hon'ble Tribunal in justified in stating that neither Explanation 2(a) nor explanation 2(b) to Section 263 is applicable in this case and thus, holding the action u/s. 263 wrong without appreciating the fact that no verification or enquiry was made by the AO even on reasons for scrutiny selection and exemption was allowed without verification of charitable nature of activities of trust?"

2(a) "Whether on the facts and circumstances of the case and law, the Hon'ble Tribunal is justified in stating that the AO had examined the aspects relating to payments made to persons specified u/s. 13(3) as well as capital expenditure incurred during the year, by conducting necessary inquiries, when the AO has failed to conduct necessary inquiries?"

2(b) "Whether on the facts and circumstances of the case and law, the Hon'ble Tribunal is justified in holding that the CIT(E) should have conducted necessary inquiries on above issues during the proceedings u/s. 263 and