2024 (1) TMI 1132

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....nder: 1. That the Commissioner of Income-Tax (Appeals) ('CIT(A)') erred on facts and in law in upholding the action of the assessing officer in completing assessment vide order dated 18.03.2015 passed under section 143(3) read with section 263 of the Income-tax Act, 1961 ('the Act'), at an income of 14,80,79,030. 2. That the CIT(A) erred on facts and in law in observing that the DIT (Exemptions) had, vide order dated 27.03.2014 passed under section 263 of the Act, given definite findings qua treatment of unutilized accumulated funds, under section 11 (2) of the Act, in the hands of the assessee as on 01.04.2008. 2.1 That the CIT(A) erred on facts and in law in not appreciating that the DIT(E), vide....

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....ction 11 of the Act was allowed to the appellant, and the same could not be brought to tax under section 11(3) of the Act. 3.3 Further, without prejudice, the CIT(A) erred on fats and in law in not appreciating that out of the accumulated funds under section 11(2) of the Act, aggregating to 12,16,04,117 as on 01.04.2008, an amount of Rs. 2,98,52,572, remaining unutilized, had been suo-motu offered to tax as income of the assessee in the assessment year 2014-15, and the same was not liable to tax under section 11(3) of the Act during the relevant assessment year.". 3. Though the assessee has raised additional grounds, but at the very outset, the ld. counsel for the assessee stated that under instructions, he is not pressing the a....

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....er was prejudicial to the interest of the Revenue." 8. The said order u/s 263 of the Act was challenged before the Tribunal but the appeal was dismissed as withdrawn by the Tribunal in ITA No. 2861/DEL/2014 vide order dated 12.01.2017. 9. Pursuant to the order u/s 263 of the Act, the Assessing Officer reframed the assessment order and held that the assessee is not eligible for exemption u/ss 11/12 of the Act under the Principles of Mutuality and unutilized amount of Rs. 12,16,04,117/- accumulated u/s 11(2) of the Act in the preceding years ceased to be for the objects of the assessee and is taxable u/s 11(3) of the Act. 10. This assessment order was challenged before the ld. CIT(A) who dismissed the appeal holding that the directio....

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....al organization. A mutual organization cannot be held to be a charitable organization in terms of section 2(15) of the Act and, t7U1S, is not eligible for any benefit u/s. 11 of the Income Tax Act, 1961. The amount accumulated u/s. 11(2) thus ceases to be accumulated for the objects of the trust and is thus taxable u/s. 11(3) of the income Tax Act, 1961. As the AO [ailed to look into this aspect, the assessment so framed is held to be erroneous. It is also prejudicial to the interest of revenue as unutilized accumulated balance of Rs. 12,16,04,117/- escaped to be assessed to tax. 4.2 It is seen from the above that the ld, DlT (E) gave a definite finding. in the matter and set aside the matter to the Assessing Officer to examine and....

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....findings collaterally in an appeal filed against the fresh order passed by the ITO with. a view to giving effect to the same. 11. In our opinion, though appeal is maintainable from the order passed by the ITO to give effect to a . reuisional order or an appellate order, only such issues can be agitated in such appeal which hate not attained finality by virtue of earlier orders of the revisional! or appellate authorities. J t is not open. in such an appeal to agitate any point which has already been decided by the revisional or the appellate authorities in their order. 4.5 In the case under consideration, no appeal has been filed against the order of the ld. ClT(E) under section 263 and hence the issue regarding taxing the ....