TaxTMI 
TaxTMI 
2022 (1) TMI 780
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....ered with Charity Commissioner, Mumbai as well as under section 12A of the Act. For the assessment year under dispute, assessee filed its return of income on 10-09-2016 declaring total income at Rs. 2,09,620/-. Assessment in case of the assessee was completed under section 143(3) of the Act vide order dated 08-12-2018 determining the total income at Rs. 15,09,615/-. The variation in total income as offered by the assessee and as determined by the assessing officer was due to disallowance of exemption claimed in respect of accumulation of income of Rs. 13 lakh under section 11(2) of the Act. 3. Be that as it may, after completion of the assessment as aforesaid, learned Commissioner of Income Tax (Exemptions), Mumbai, in exercise of powers....
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....lete the proceeding initiated under section 263 of the Act. While doing so, he relied upon various judicial precedents to hold that the assessing officer having not made necessary enquiry as provided under Explanation 2 to section 263 of the Act, the assessment order is erroneous and prejudicial to the interest of revenue. Accordingly, he set aside the assessment order with a direction to the assessing officer to pass a fresh assessment order keeping in view the issue raised in the proceedings under section 263 of the Act and after conducting proper enquiries after providing due opportunity of being heard to the assessee. 4. The learned authorized representative of the assessee submitted, assessee had received the equity shares of Asian ....
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.... To stress upon the fact that the assessee has an outer limit of one year for investing in the mode and manner prescribed under section 11(5) of the Act, he relied upon CBDT circular No.636 dated 13-01-1992. 6. The learned departmental representative strongly relied upon the observations of learned Commissioner and submitted that since the assessee had violated the conditions of section 11(5) r.w.s. 13(1)(d) of the Act, assessee's claim of exemption could not have been allowed. The assessing officer, having failed to examine the applicability of the relevant statutory provisions, the assessment order is erroneous and prejudicial to the interest of the revenue. 7. We have considered rival submissions and perused materials on record. Un....
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....ss of 15% will also be eligible for exemption if it is accumulated or set apart for the object of the trust. Sub section (2) of section 11 provides that if, in a particular previous year the income applied towards charitable or religious object of the trust falls short of 85% of the income derived during that year, still, the assessee would be eligible for exemption, if such income is accumulated or set apart for application to such charitable purposes subject to the following conditions:- (i) The person concerned must furnish a statement in the prescribed form and in the prescribed manner stating the purpose and the period for which the income is accumulated or set apart, which in no case shall exceed five years; (ii) The....
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....f the financial year in which the income is received has been provided for making investment in the mode and manner prescribed under section 11(5) of the Act. In the facts of the present case, admittedly, the equity shares of Asian Paints Ltd were received by the assessee in the financial year 2014-15. Therefore, as per clause (iia) of proviso to section 13(1)(d) of the Act, the provisions of section 13(1)(d) of the Act would come into play after the expiry of one year from the end of the financial year 2014-15. In other words, the prohibitory conditions of section 13(1)(d) of the Act would be applicable from 01-04-2016, falling in financial year 2016-17 relevant to assessment year 2017-18. Thus, insofar as the impugned assessment year is c....