2022 (11) TMI 190

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....3), Kolkata u/s 143(3) of the Act dated 02.08.2018. 2. Sole grievance of the assessee is that Ld. CIT (E) erred in initiating/invoking the provisions of section 263 of the Act holding that the assessment order dt. 02-08-2018 for the assessment year 2016-17 is erroneous and prejudicial to the interest of the revenue. 3. Brief facts of the case are that the assessee is a trust, engaged in the activities of the Protection of Women from Domestic Violence Act, 2005 and registered u/s. 12A of the Income-tax Act, 1961 ( in short, referred to as the 'Act' vide order No. DIT( E )/T-169/8E/182/95-96 dated 28.03.96. Nil income declared in the return filed on 30-09-2016 for the AY 2016-17. After the case is being selected for scrutiny, the ld. AO exa....

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....ted fund and application during the year. It was asserted that the assessee has not claimed the alleged sum of Rs. 53,52,501/- as application of income during the year and, therefore, the revisionary proceedings carried out u/s. 263 of the Act are liable to be quashed. 7. Per contra, the Ld. Departmental Representative vehemently argued supporting the order of the ld.CIT ( E ). 8. We have heard the rival contentions and perused the material placed on record before us. Assuming jurisdiction u/s 263 of the Act by the ld. CIT ( E ) and holding the assessment order dt. 02-08-2018 as erroneous and prejudicial to the interest of the revenue is in challenge before us. We find that the assessee trust is registered u/s. 12A and engaged in activiti....

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....ich the ld. CIT ( E ) mentioned in the show cause notice issued u/s. 263 of the Act, is also part of the list of amount spent at Rs. 53,52, 501/- mentioned above. On perusal of the details show that the assessee has accumulated the fund in the past as per provisions of section 11(2) and has rightly applied the accumulated fund for the purpose it was meant for. On perusal of the financial statements clearly shows that the assessee has not claimed the alleged sum of Rs. 53,52, 501/- as application of income during the year. It seems that the ld. CIT ( E ) has inadvertently considered the figures of expenditure shown under the head 'building renovation & construction & purchase of assets' totalling to Rs.49,70,037.71 (Rs.32,58,029.71 + Rs. 17,....