9911796707
TMI Blog2015 (2) TMI 445X X X X Extracts X X X X X X X X Extracts X X X X ..... ,000/- and Rs. 14,33,333/- being disallowance made by the Assessing Officer under the head Advertisement, Rent and other expenses although no such disallowances had been made in the original assessment made by the Assessing Officer. 2. Apropos ground No.1, it is noticed form the orders of the lower authorities that on verification of the balance sheet and Income & Expenditure Account attached with the return of income, the Assessing Officer noticed that no such amount has been shown as donation in the Income & Expenditure Account. But in the balance sheet, assessee has shown a capital fund of Rs. 2,66,42,416/-. No breakup of the donation was attached along with the return of income. After verification of the balance sheet of the preceding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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 Assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore, firstly it has to be seen whether such donations were voluntary donations. According to the dictionary meaning, an act can be said to be voluntary if it is done by free choice, of one's own accord, without compulsion or obligation, without valuable consideration, gratuitous etc. Reference can be made to Black's Law Dictionary and Webster's Unabridged Dictionary. In the instant case, there is no material on the record to suggest that such donations were given against the will of the donors or by any compulsion or under any obligation. In that sense, it can be said that donations were voluntary. 4(5) Further, donations towards corpus funds of charitable trust are exempt under Section 12 of the Act. However, Section 12 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The voluntary donations corpus or otherwise are income of the appellant. The evidence regarding corpus donation is in any case not brought on record. All the donations are received in cash and essential ingredients of section 68 of the Act with regard to identity, creditworthiness and genuineness have also not been proved to the satisfaction of the AO. The AO has therefore rightly included the amount of Rs. 2,00,34,095/- to the income of the appellant. The addition of Rs. 2,00,34,095/- is confirmed. The ground of appeal fails and is rejected." 4. Aggrieved, the assessee has preferred an appeal before the Tribunal and reiterated its contentions. 5. The ld. D.R., on the other hand, has placed reliance upon the order of the ld. CIT(A). 6. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the assessee has raised a preliminary objection that this assessment was framed consequent to the order of the ld. Commissioner of Income-tax passed under section 263 of the Act and while framing assessment consequent to 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 rece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other expenses. The scope of jurisdiction of the Assessing Officer is very limited and he can only examine the issues which were set aside by the ld. Commissioner of Income-tax 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. 10. The Hon'ble jurisdictional High Court in the case of CIT vs. Mansa Ram and Sons (supra) has categorically held that the ld. Commissioner of Income-tax's order limits the Income Tax Officer's jurisdiction only to the items mentioned in his order. If so, the Income Tax Officer has no power to add other amounts or to make other additions to the assessee's income. His enqu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
