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TMI Blog2023 (12) TMI 622X X X X Extracts X X X X X X X X Extracts X X X X ..... der dated February 13, 2021. 2. The Commissioner of Income-tax (Exemptions) failed to appreciate that the appellant had set aside an amount of Rs. 16,15,000 under section 11(2) duly specifying in form 10 the purpose for setting aside the amount, thereby satisfying the conditions mentioned in section 11 of the Act. Therefore, order under section 263 seeking to revise the assessment on the ground that the exact purpose for setting aside the amount was not specified, is bad in law. 3. The Commissioner of Income-tax (Exemptions) failed to appreciate that the provisions of section 11 do not require the exact purpose for which the amount is set aside to be specified for claiming exemption under the Act. Hence, the order dated March 20, 2023 passed by the Commissioner of Income-tax (Exemptions) is bad in law. 4. The appellant craves leave to add, amend, alters or deletes any of the above grounds of the appeal." 2. The brief facts of the case are that the assessee is a trust duly registered under sections 12A and 80G. The assessee filed its return of income on October 17, 2018 declaring total income at Rs. 8,66,050. The case of the assessee was selected for complete scrutiny on foll ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the order passed by National e-Assessment Centre, Delhi (hereinafter 'the Assessing Officer' or 'the AO') is erroneous in so far as it is prejudicial to the interests of the Revenue, in view of the following : In this case, return of income filed by the assessee was selected for scrutiny through computer assisted scrutiny selection and notice under section 143(2) of the Act was issued on September 22, 2019. The assessment was completed on February 13, 2021 by accepting the returned income of the assessee at Rs. 8,66,050. It is observed that the assessee has claimed accumulation under section 11(2) of the Income-tax Act, amounting to Rs. 16,15,000. It is also seen from the statement in form 10 filed as per rule 17(2) of the Income-tax Rules, 1962 by the assessee that it has shown purpose of accumulation as 'charitable purpose'. The said funds have been parked in balance-sheet as balance with bank in current account during the previous year. However, as per amended provisions of section 11(2)(a) read with section 11(3)(a), the assessee is expected to state the exact purpose for which the income is being accumulated and period for which said income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ative to submit your representation, if any along with supporting documents/information in support of the issues involved (as mentioned below). If you wish that the revision proceeding be concluded on the basis of your written submissions/ representations filed in this office, on or before the said due date, then your personal attendance is not required. You also have the option to file your submission from the e-filing portal using the link : incometaxindiaefiling.gov.in Income-tax Department. Kindly refer to the above. With reference to notice for the hearing, in respect of revision proceedings under section 263 of the Income-tax Act, 1961 for the assessment year 2013-14. You have given opportunity for the hearing on March 9, 2023 at 2.30 p.m. vide DIN and notice No : TBA/REV/F/ REV1/2022-23/1050391456(1), dated March 3, 2023. However, it is noticed that you have not submitted any reply till date. Further, you are being given final opportunity for the hearing. 2. On verification and careful examination of the assessment records for the assessment year 2018-19 in your case, wherein the assessment was completed under section 143(3) read with section 143(3A) and (3B) dated Feb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ic verification of the above facts stated above and, therefore, the order is prejudicial to the interests of the Revenue. 3. In view of the above, may I request you to show cause why the assessment order dated February 13, 2021 should not be set aside under section 263 of the Act with appropriate directions to the Assessing Officer to redo the assessment ? You are accorded an opportunity to attend in person or through an the authorised representative before the undersigned on March 17, 2023 at 12.30 p.m. at my office. Personal appearance is not necessary, and you may alter natively file a written response to this show-cause notice. You may further note that if nothing is heard from you at the appointed date, it will be presumed that you have no submissions to make. Necessary action on the matter will be taken without any further reference to you. Kindly accord priority to the matter." 5. With reference to above, we, have gone through the contents of notice issued under section 142(1) also, we observed that vide point No. 9, the Assessing Officer has asked to furnish following details as under : 1. The assessment year of accumulation ; 2. Amount accumulated ; 3 Amount utili ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. In this regard, the assessee has placed reliance on the following decisions rendered by the hon'ble High Courts as under : [2017] 394 ITR 236 (Karn) ; [2017] 77 taxmann.com 38 (Karn) (CIT (Exemptions) v. Gokula Education Foundation) : "The issue centres around the issue of compliance of section 11(2)(a) only, which provides for specification of the purpose for which the income is being accumulated or set apart. Since, there is no controversy for the period for which the amount is set apart, it is found appropriate not to make any further observations in this regard. The only question, therefore, may arise is as to 'whether the specification of the purpose in the present case could be said as sufficient compliance for claiming the benefit under section 11(2)(a) or not'. (Para 13) As recorded earlier in the first case, initially there was a broad purpose as 'towards objects of the trust'. Thereafter, it is in the revised form 10, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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