9911796707
TMI Blog2018 (1) TMI 1660X X X X Extracts X X X X X X X X Extracts X X X X ..... uilding fund is forming part of the corpus fund eligible for deduction u/s 11(1)(d). Therefore, the initiation of the proceedings u/s 263 for disallowing the claim u/s 11(1)(d) of the corpus donation on the ground that it is not voluntary and not capital in nature is not in accordance with law and hence void - Decided in favour of assessee. - ITA No. 20/Coch/2017 - - - Dated:- 29-1-2018 - SHRI CHANDRA POOJARI, AM AND SHRI GEORGE GEORGE K, JM For the Appellant : Sri. K.M.Jose For the Respondent : Sri. A.Dhanaraj, Sr.DR ORDER Per George George K., JM This appeal at the instance of the assessee is directed against CIT s order dated 22.12.2016 passed u/s 263 of the Income-tax Act, 1961. The relevant assessment year is 2010- 2011. 2. The grounds raised read as follows:- 1. The Commissioner of Income Tax (Exemptions), Kochi has vide order under section 263 of the Income Tax Act, 1961 come to the finding that by virtue of section 13(8) of the Income Tax Act nothing contained in section 11 or 12 of the Act shall operate so as to exclude any income from the total income of the assessee for the AY 2010-11 and accordingly the Appellant is not entitled to t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s)-III with regard to the applicability of the provisions of section 2( 15) of the Act no revision can be done u/s.263 by invoking the provisions of section 2(24)(ii)(a), section 2(15) or 13(8) of the Act. Reliance is placed on the decision in, CIT v. Alagendian Finance Limited (2012) 293 ITR 1 (SC) For these and other grounds that may be urged at the time of the hearing, it is prayed that the Order of the Commissioner of Income Tax (Exemptions), Kochi may be set aside and appropriate reliefs granted. 2.1 The assessee has also raised additional ground. The additional ground reads as follow:- In view of the decision of the Apex Court in CIT v. Alagendra Finance Ltd reported in 293 ITR 1 (SC) in the case of the Appellant the matter with regard to the eligibility of the deduction u/s 11 (1)( d) of the Corpus Donation received by the Appellant amounting to ₹ 2,08, 91,000/- was not the subject matter of the re-assessment proceedings u/s 147 read with section 148 of the Income Tax Act as confirmed by the reasons for initiating the proceedings under section 148 issued by the Assessing Officer. The period of limitation provided for under subsection (2) of section 263 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... untary contribution received with a specific direction that they should form part of the corpus of the institution), the same can only be excluded in computing the total income under the provisions of section 11 12 of the Income Tax Act, 1961. (iii) By virtue of section 13(8) of the Income Tax Act, the Assessing Officer had held that nothing contained in section 11 or section 12 shall operate so as to exclude any income from the total income of the assessee for the assessment year 2010-2011. 3.3 In response to notice u/s 263 of the Income-tax Act, the assessee filed objections vide its letter dated 10.05.2016. The gist of the submissions are reproduced in para 3 of the impugned order of the CIT. The CIT, however, rejected the contentions / objections for the proposed revision u/s 263 of the Income-tax Act and passed revisionary order on 22.12.2016. The relevant finding of the CIT in passing the revisionary order u/s 263 of the Income-tax Act reads as follow:- 4. I have gone through the submissions made by the assessee during the course of the proceedings u/s 263 of the Income Tax Act and I find that the assessee has not adduced any convincing reply to the proposed revis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the donors specifically mentioned that the donations are to be utilized for infrastructure development, viz., building fund. It was submitted that since there are specific expression by the donors that contributions are to be utilized for the specific purpose, the donations can only be treated as corpus donation and by virtue of section 11(1)(d) of the I.T.Act, same does not form part of total income. The learned AR had produced the copy of the specimen letter of the donor to the above effect and also receipt given by the assessee to the donor. 4.2 The learned Departmental Representative, on the other hand, supported the revisionary order passed u/s 263 of the Income-tax Act, 1961. 5. We have heard the rival submission and perused the material on record. In the instant case, the return of income for assessment year 2010-2011, was filed on 18.10.2010. It was submitted by the learned AR that by virtue of second proviso after sub-clause (e) to section 143(1) of the I.T.Act, intimation / assessment u/s 143(1) of the I.T.Act is to be completed within a period of one year from the end of the financial year in which the return of income was filed, i.e. on or before 31.03.2012. Acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Bench of the Tribunal in the case of T.R.Raghavan, Elite Fabrics v. DCIT in ITA Nos.350 and 351/Coch/1989, order dated 22.09.1993 had also held on identical facts that the revisional jurisdictional u/s 263 of the I.T.Act is barred by limitation. In the instant case, admittedly, the intimation u/s 143(1) of the I.T.Act was issued and this fact was mentioned in the notice issued u/s 263 of the I.T.Act (notice dated 02.05.2010). The Hon ble Bombay High Court in the case of CIT v. Anderson Marine Sons Pvt. Ltd. [(2004) 266 ITR 694 (Bom.)] had held that an intimation u/s 143(1) of the I.T.Act is an order which is amenable for revision u/s 263 of the I.T.Act. 5.4 In the instant case, the subject matter of revision is regarding the eligibility of deduction u/s 11(1)(d) of corpus donation that the assessee had received amounting to ₹ 2,08,91,000. The corpus donation amounting to ₹ 2,08,91,000, whether it is eligible for deduction u/s 11(1)(d) of the I.T.Act was not subject matter of reassessment proceedings u/s 147 r.w.s. 148 of the I.T.Act. This is evident from the reasons initiated for proceedings u/s 148 of the I.T.Act and also the reassessment order completed u/s 143( ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
