TMI Blog2015 (2) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... ntire receipts as unexplained cash credit under section 68 of the Act, which was later on confirmed by the ld. CIT(A). Since the ld. CIT(A) has adjudicated the issue in the light of the relevant provisions of the Act, we find no infirmity therein. - Decided against assessee. Scope of Revision u/s 263 - Held that:- Scope of jurisdiction of the Assessing Officer is limited and he cannot examine other issues of Advertisement expenses, Rent and other expenses which were not rather referred to in the order passed under section 263 of the Act. The other issues cannot be examined by the Assessing Officer while framing the assessment consequent to the order passed under section 263 of the Act. We, therefore, set aside the order of the ld. CIT(A) in this regard and delete the additions made on account of Advertisement, Rent and other expenses. - Decided in favour of assessee. - ITA No. 584/LKW/2012 - - - Dated:- 29-8-2014 - Shri Sunil Kumar Yadav And Shri. A. K. Garodia,JJ. For the Appellant : Shri. H. P. Singh, Advocate For the Respondent : Shri. Alok Mitra, D. R. ORDER Per Sunil Kumar Yadav: This appeal is preferred by the assessee against the order of the ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ved, assessee preferred an appeal before the ld. CIT(A) with the submission that the donations were made to the assessee-society directly to the corpus and therefore not assessable to tax. It was also stated that the donations were in the nature of gifts or donations and are not to be assessed to tax and the assessee cannot be expected to produce all the donors. The ld. CIT(A) re-examined the claim of the assessee in the light of the submissions and was of the view that registration under section 12A of the Act was not available for the impugned assessment year, therefore, the benefit of section 11 of the Act cannot be given to the assessee. Therefore, the voluntary donation, corpus or otherwise are income of the assessee and in the absence of the relevant information with regard to the donations, the said amount should be treated as unexplained cash credit. Accordingly, the ld. CIT(A) has confirmed the addition made by the Assessing Officer. The relevant observations of the ld. CIT(A) are extracted hereunder for the sake of reference:- 4(3) I have examined the facts and circumstances of the case. I have considered the findings of the Assessing Officer in the assessment order a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) of the Act by the Direct Tax Laws (Amendment) Act, 1987, with effect from 01.4.1989. Section 2(24) of the Act has also been amended by the same Amendment Act. The effect of amendment is that although corpus donation should be treated as income in the hands of the recipient, but in the case of trust or institution, who comply with the requirement for exemption under section 11 of the Act, they will be exempted from their income. However, in case the trust or institution loses the exemption under section 11 of the Act, either by not complying with the condition laid down in section 12A of the Act or by falling within the mischief of section 13 of the Act, corpus donation will be included in the income of the institution and will be assessed accordingly. 4(6) In view of above, the voluntary donations as computed by the AO at ₹ 2,00,34,095/- at page 8 of the assessment order are income of the assessee. The appellant has not been registered under section 12A of the Act for the year under consideration and therefore exemption under section 11 of the Act is not available to the appellant. The voluntary donations corpus or otherwise are income of the appellant. The evidence rega ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the order of the ld. Commissioner of Income-tax passed under section 263 of the Act, the Assessing Officer has a limited jurisdiction to frame the assessment only on those issues on which assessment order was set aside in the first round. In the instant case, the order was set aside by the ld. Commissioner of Income-tax under section 263 of the Act on the issue of receipt of donations and its treatment in the hands of the assessee. Therefore, the Assessing Officer has a limited jurisdiction to examine the issue of receipt of donations in the hands of the assessee. He has no other jurisdiction to entertain or adjudicate other issues while framing the assessment consequent to the order under section 263 of the Act. In support of his contention, the ld. counsel for the assessee has placed reliance upon the judgment of the Hon'ble jurisdictional High court in the case of CIT vs. Mansa Ram and Sons [1991] 190 ITR 453; Hon'ble Gujarat High Court in the case of CIT vs. D.N. Dosani [2006] 280 ITR 275 and the Hon'ble Calcutta High Court in the case of CIT vs. Hindustan coconut Oil Mill, 174 CTR 583, in which it has been repeatedly held that while framing the assessment consequ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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