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2022 (12) TMI 751 - AT - Income TaxRevision u/s 263 by CIT - taxation being anonymous donation received in cash u/s 115BBC - Assessee is an AOP for the impugned assessment year, but not a charitable trust - difference in recording of reasons for revision - whether the assessment order passed by the learned assessing officer, though holding that an anonymous donation is chargeable to tax u/s 115BBC of the act, can he set off the deficit claimed by the trust - HELD THAT:- In the income and expenditure account interest on fixed deposit was included which was reduced from the business income and offered to tax as interest on fixed deposit Under the head income from other sources. Accordingly, the net income was offered at rupees nil. However, in the end of the computation statement. It claimed the carry forward of the depreciation however, did not claim the carry forward of the losses. Thus according to the computation, the assessee has carried forward the depreciation comprising of depreciation for assessment year 2011 – 12 and pertaining to assessment year 2010 – 11 and a business loss pertaining to assessment year 2009 – 10. This is so because the due date of filing of the return of income was 30 September 2011 whereas the assessee filed its return of income only on 17/4/2012. Therefore, as per the assessee, the carry forward of losses is not allowable. The learned assessing officer has started. The computation of total income by showing the deficit of ₹ 5,30,22,672 and made an addition thereto of any anonymous donation of ₹ 55,204,903. There is no error in the computation because, the losses can be set-off for the same assessment year, even if the return of income is filed late. Therefore, to that extent. There is no error in the order of the learned AO. According to the provisions of Section 115BBC, on anonymous donation tax is required to be charged at the rate of 30% subject to certain deductions. The learned CIT did not invoke the provisions of Section 263 of the act for this reason. The only reason stated by the PCIT is that the learned assessing officer has granted set off deficit of the assessee trust against the anonymous donation. We are of the view that both these things are different. One is the manner of computation of total income and 2nd is manner of chargeability of tax on the total income. The 2nd aspect is not at all a reason stated by the ld CIT for upsetting the order of the learned AO. We do not find any reason to uphold the order of the learned PCIT passed u/s 263 of the act as there is no error which is prejudicial to the interest of the revenue pointed out in his order dated 22/3/2021. Hence same cannot be sustained and therefore, quashed. Appeal filed by the assessee is allowed.
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