TMI Blog2023 (6) TMI 172X X X X Extracts X X X X X X X X Extracts X X X X ..... income by admitting that the same capital gain as income u/s 11(3) when the same is indeed set apart for a specified purpose Setting up free coaching cum Study Centre for BPL Card Holders and Other admitted in Form 10B, thereby, the amount set apart is not to be treated as income, though, the same was mistakenly admitted as income of the appellant s trust under Section 11(3) of the Act in the return of income. Assessee has himself accepted that mistake was committed while filing statutory return of income by admitting that the same capital gain as income under Section 11(3) of the Act, when the same is indeed set apart for a specified purpose Setting up free coaching cum Study Centre for BPL Card Holders and Other admitted in Form 10B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... be quashed with directions for appropriate relief. 2. The facts giving rise to the present appeal are that assessee is a trust and has filed its return of income on 23.11.2020 for the assessment year 2020-21. Vide order dated 08.10.2021, ADIT, Centralized Processing Centre (CPC) processed the return of income under Section 143(1) of the Income-Tax Act, 1961 as the assessee claimed capital gain of Rs.8.86 lacs and the duly reflected in the return of income at Column No.4(vi) as a part of accumulation set apart for the year under consideration out of income earned on account of capital gain during the year, hence, the return was chargeable under Section 11(3) of the Act. Therefore, appellant claimed that the income was not chargeable un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Charged tax and also levied interest u/s.234B and 234C of the Act; Above actions are arbitrary misconceived, erroneous and unjust and so must be quashed with directions for relief. 4. During assessment proceedings before the learned Commissioner of Income-Tax(Appeals), various notices of hearing under Section 250 of the Income-Tax Act, 1961 were issued to the appellant from time to time including notices dated 15.09.2022, 15.11.2022 (system generated) and latest hearing notice on 22.02.2022. In response to these notices, assessee relied vide submissions dated 15.11.2022 and same has been reiterated in the latest submission filed on 23.03.2023. On perusal of all these submissions, it was observed that assessee has himself accepted that m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as made before the ADIT, CPC, Bangaluru, the application under Section 154 of the Income-Tax Act, 1961 as well as the grounds raised in this appeal against order u/s. 143(1) of the Act are neither justified nor acceptable to exclude the appellant s claim u/s. 11(3) of the Act as not taxable income because the gain first goes to the set apart u/s. 11(2) of the Act and after that flows to specified investment u/s. 11(5) of the Act and failing which again it falls back as taxable income u/s. 11(3) of the Act. 6. In view of these facts, situations and circumstances, taxability of such specified amounts in due course of its receipts anytime up to five years, the same would be the legal responsibility of the assessee to make such an apt and pr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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