AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2024 (4) TMI 131
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.... as on the facts of the case by declaring the assessment order dated 26.12.2019 passed under section 143(3) of the Act, for the AY 2017-18 as erroneous whereas the order was passed after making inquiry on the issue and after having examined the replies of the assessee with due application of mind by the AO. 2. That the Ld. CIT(Exemption) has erred in law as well as on the facts of the case by holding that the "The AO failed to examine the issue, which should have been done during the assessment u/s. 143(3)" when the issue was properly examined during assessment proceedings and reasons and justifications recorded in the assessment order as per accepted judicial principles. 3. That the action of the Ld. CIT(Exemption) in completely ignori....
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....319/-, Rs. 48,70,094/- & Rs. 9,45,588/- totalling to Rs. 65,00,001/- accumulated / set apart within the meaning of section 11(2) during F.Y(s). 2011-12, 2012-13, 2013-14 respectively has been utilized / applied as donation to two other trusts. Amount of Rs. 10,00,000/- was given to Shree Raghunath Balika Vidyalaya & Rs. 55,00,000/- was given to Hindu College, Delhi. Both are NGOs registered u/s. 80G. On perusal of Schedule-I (Details of amount accumulated / set apart within the meaning of section 11(2) of ITR filed for AY 2017-18, it was revealed that all the above amounts have been accumulated for the purpose of "For Setting up an old age home/educational institution." The assessee was given an opportunity of hearing on 22.3.2022 vide show....
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.... prejudicial to the interests of the revenue. Accordingly, the Ld. CIT(Exemption) vide his order dated 24.3.2022 set aside the assessment order u/s. 263 of the Act to the file of the AO for making a de novo assessment after proper examination of the issue involved and due verification wherever required by providing reasonable opportunity of being heard to the assessee and pass a speaking and well reasoned order. 3. Aggrieved with the aforesaid Ld. CIT(Exemption)'s order, Assessee is in appeal before us. 4. We have heard both the parties and perused the relevant records. 4.1 At the time of hearing, Ld. CIT-DR relied upon the order passed by the Ld. CIT(Exemption) u/s. 263 of the Act and in support of his contention he filed a written subm....
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....ee Raghunath Balika Vidyalaya and none of the documents produced by the assessee indicate that the payments were towards reimbursing 'actual expenses of constructing the blocks. To support this version, he draw the attention to page no. 31 (serial no. 7 of the assessee's paper book) filed on 20.9.2022, which is a letter from Chairman, Governing Body of Hindu College to the assessee requesting to send lump sum amount of Rs. 30 lacs to Hindu College so that Hindu College can make payment to the contractors. Thus, the funds transferred by the assessee to the Hindu College and assessee did not make any direct payment to contractors and similarly the lump sum amount was payment was paid to the Shree Raghunath Vidyalaya. He further submitted that....
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....r submitted that Ld. CIT(Exemption) has erred in law as well as on the facts of the case by declaring the assessment order dated 26.12.2019 passed under section 143(3) of the Act, for the AY 2017-18 as erroneous whereas the order was passed after making inquiry on the issue and after having examined the replies of the assessee with due application of mind by the AO. He further submitted that the donation money was given to the donee and the money was paid to the respective trust only after ascertainment that the same is spent by these trusts for constructions/erections of buildings at their premises through their respective contractors. Thus the money was not given to the trust as donation but was paid for constructions of desired building ....
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....e previous year in which it is so applied or ceases to be so accumulated or set apart or ceases to remain so invested or deposited or credited or paid, as the case may be, or of the previous year immediately following the expiry of the period aforesaid. It is evident that amount of Rs. 65 lacs has been paid as donation to other Trust / Charitable Organisations and such payment will be hit by Explanation to 11(2) r.w.s. 11(3)(d) of the Act and in view thereof the amount of Rs. 65 lacs, donated by the assessee to other institutions i.e. Hindu College and Shree Raghunath Balika Vidyalaya out of accumulated fund should have been brought to tax by the AO. Hence, Ld. CIT(E) correctly observed that that as per Explanation to section 11(2) of the A....