9911796707
TMI Blog2023 (8) TMI 1513X X X X Extracts X X X X X X X X Extracts X X X X ..... ld. CIT(E) is considering as donation, hit by the provisions of section 11(2) - HELD THAT:- It is not in dispute that during the course of assessment proceedings itself, the assessee was asked to provide details of expenditure out of corpus fund, and it is also not in dispute that on perusal of the details, submitted by the assessee, the Assessing Officer found that the assessee has donated to Life Trust of India, ISKCON Food Relief Foundation, Population First and ApneAap Women s Collective - Victoria. It is also true that the assessee was asked to explain why the donations should not be disallowed in light of provisions of section 11(2) of the Act. The assessee explained that with deserving NGOs whose aims and objects that matches with ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... risdiction by the CIT(E) u/s 263 of the Act. The appeal of the assessee is dismissed. - SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER, AND SHRI YOGESH KUMAR U.S, JUDICIAL MEMBER For the Appellant : Shri K.V.S.R. Krishana, Adv For the Respondent : Shri H.K. Choudhary, CIT- DR ORDER PER N.K. BILLAIYA, ACCOUNTANT MEMBER:- This appeal by the assessee is preferred against the order of the CIT(E), Delhi dated 24.03.2022 framed u/s 263 of the Income-tax Act, 1961 [the Act, for short] pertaining to Assessment Year 2017-18. 2. The sum and substance of the grievance of the assessee is that the CIT(E) erred in law in assuming jurisdiction u/s 263 of the Act and further erred in holding the assessment order dated 27.12.2019 passed by the Assessing Officer is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... institutions or Institutions doing similar relief works; (v) To establish, support, maintain or grant aid to schools, colleges and educational institutions for public benefit which impart education and promote study of Culture and Languages and to libraries, reading rooms, museums, sports cultural academies or other institutions, established for public for the promotion of culture and diffusion and spread of arts, science and other branches of knowledge or for the collection of works of art, natural history, or for the encouragement of economical and scientific research, inventions and designs for public benefit; (vi) To establish, support, maintain or grant aid to hospitals, medical schools and colleges, nursing houses, babies or old age h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f income u/s 11 of the Act. Return was selected for scrutiny assessment and assessment was completed accepting the returned income of the assessee vide order dated 27.12.2019. Assuming jurisdiction u/s 263 of the Act, the CIT(E) issued a show cause notice to the assessee, which reads as under: 6. It is the say of the ld. counsel for the assessee that during the assessment proceedings itself, the issues raised by the CIT(E) have been explained and considered by the Assessing Officer. Referring to the relevant para of the assessment order, the ld. counsel for the assessee read the relevant part and vehemently stated that what the CIT(E) is considering as donation, is not donation, but contribution in tandem with the deserving NGOs whose aims ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lf, the assessee was asked to provide details of expenditure out of corpus fund of Rs. 41 lakhs, and it is also not in dispute that on perusal of the details, submitted by the assessee, the Assessing Officer found that the assessee has donated Rs. 3.50 lakhs to Life Trust of India. Rs. 9 lakhs to ISKCON Food Relief Foundation, Rs. 3 lakhs to Population First and Rs. 25 lakhs to ApneAap Women s Collective - Victoria. 11. It is also true that the assessee was asked to explain why the donations should not be disallowed in light of provisions of section 11(2) of the Act. The assessee explained that with deserving NGOs whose aims and objects that matches with objects of the trust, applies accumulated funds on the activities of the general public ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee. Therefore, there should not be any dispute in so far as applicability of provisions of Section 11(2) of the Act are concerned. 16. There is no evidence brought on record by the assessee neither before the lower authorities nor before us to demonstrate how the alleged contribution was accounted for by the recipients and what treatment they have given in their books of account. 17. Provisions of section 11(3) are very clear wherein it has been mentioned that donations given out of accumulated funds u/s 11(2) of the Act of earlier previous years are not allowable as application of income for charitable or religious purposes and the same shall be deemed to be income of the assessee. Therefore, in our considered opinion, an error has cr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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