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2023 (12) TMI 622 - AT - Income TaxRevision u/s 263 - exemption u/s 11(2) - as per CIT purpose of accumulation u/s 11(2) not mentioned - HELD THAT:- It is observed that issue relating to accumulation under section 11(2) of the Act has been specifically enquired by the Assessing Officer and duly responded by the assessee also. We do not see any lack of enquiry at the end of the Assessing Officer and justification of the same at the end of the assessee. The only objection of the learned Commissioner of Income-tax (Exemptions) is with regard to this accumulation is that "exact purpose" not specified. The assessee has placed on record form 10 furnished before the AO specifying the purpose, amount and period of accumulation. The purpose for accumulation has been specified as "charitable purpose". In any case, the purpose of accumulation cannot be beyond the objects of the assessee. In this regard, the legal position is in favour of the assessee, i. e., the assessee is not suppose to mention the "exact purpose" of accumulation. Thus it can be safely concluded that all the technical requirements were duly fulfilled by the assessee along with satisfactory response to the queries raised through notice under section 142(1). The only objection raised by the learned Commissioner of Income-tax (Exemptions) through notice issued u/s 263 was that the assessee has not specifically mentioned the purpose of accumulation, is not a valid objection for which proceedings u/s 263 cannot be carried out. As the facts discussed above and considering various judicial pronouncements, we find the merits in contentions of the assessee. We find no error in order passed under section 143(3) of the Act. In view of this ground Nos. 2 and 3 raised by the assessee are allowed and order passed under section 263 of the Act is set aside. Decided in favour of assessee.
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