9911796707
TMI Blog2022 (7) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act could be invoked only in the event of lack of enquiry and not for inadequate enquiry; even though, in the instant case, there is no inadequate enquiry. From the perusal of the order of the ld. PCIT, we find that the ld. PCIT nowhere points out as to how the order of the ld. AO is erroneous or prejudicial to the interest of the Revenue. On this ground also, the revision order passed by the ld. PCIT deserves to be quashed. Moreover the activities of the assessee Institution had not changed from earlier years and the ld. AO had the benefit of scrutiny assessment orders framed for A.Y. 2012-13 u/s.143(3) of the Act dated 03/02/2015 and for A.Y. 2013-14 framed u/s.143(3) of the Act dated 28/03/2016 before him, while framing the assessment for A.Y.2015-16 i.e. the year under consideration. In view of the above, we have no hesitation in quashing the revision order passed by the ld. PCIT u/s.263 of the Act as it is bad in law for more than one reason as detailed hereinabove. Accordingly, the grounds raised by the assessee are allowed. - ITA No.1883/Mum/2021 - - - Dated:- 10-6-2022 - SHRI M.BALAGANESH, ACCOUNTANT MEMBER AND SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... basic amenities in the slums and provisions of financial aid for such projects and schemes through loans, grants, donations and bridge finance. The return of income for the A.Y.2015-16 was filed by the assessee Institution on 26/09/2015 along with Balance Sheet, Income and Expenditure account and Audit Report in Form No.10B declaring total income at Rs. Nil. The activities carried out by the assessee Institution are considered to be charitable in nature within the meaning of Section 2(15) of the Act. The assessee claimed exemption u/s.11 of the Act in the return of income and the same was duly granted by the ld. AO in the assessment proceedings. The ld. AO completed the assessment u/s.143(3) of the Act on 05/06/2017 accepting the nil income of the assessee. During the course of assessment proceedings, the ld. AO obtained various details from the assessee which were duly examined and finally the income of the assessee was determined in the following manner:- Spare Samudaya Nirman Sahayak Computation of Income Particulars Rs. Rs. Income as per accounts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were received and the amounts have been mentioned. The assessing officer ought to have examined the above receipts along with statutory compliances having been completed in this regard. The expenditure incurred against these receipts has also not been checked, which also should be verified. The third issue here is accumulation of funds u/s 11(2) where the assessee, in response to the notice u/s 263, has submitted that the trust has not accumulated any funds in AY 2015-16 and that the previous accumulated funds had been utilized in AY 2014-15. The assessing officer shall verify the above claim of the assessee while passing the order giving effect to this order. The above details were not examined at the time of original assessment and therefore, the order passed by the Assessing Officer is erroneous in so far as it is prejudicial to the interests of the revenue because the order is passed without making inquiries or verification which should have been made. 5. Hence, by virtue of powers vested in the undersigned vide the provisions of Section 263 of the Income Tax Act, the assessment order ,u7s.143(3) of I.T. Act dated 05/06/2017 is set aside. Assessing officer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the format given by the ld. AO; details of expenses incurred on objects of the Institution; details of accumulation of income made u/s.11(2) of the Act for 10 years in the format given; details of option exercised in earlier years u/s.11(1)(a) of the Act for utilization of income during the year under consideration and party wise details of foreign donations received along with copy of FIRCs and audited foreign contribution amounts together with its utilization thereon. The details of foreign contributions received together with audit certificate and audited accounts are enclosed from pages 52-64 of the paper book filed before us. We also find that form FC3 being the annual return to be filed before the Ministry of Home Affairs under FCRA Act had been changed to form FC4 and the assessee had duly furnished form FC4 before the ld. AO which are also enclosed in pages 64-67 of the paper book filed before us. The copy of FIRCs are enclosed from pages 68-69 of the paper book. Similarly, we find that the entire details of accumulation of income made u/s.11(2) of the Act together with utilization thereon for each of the years commencing from A.Yrs. 2006-07 to 2015-16 are enclosed in p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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