2024 (6) TMI 337

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....ces of the case, the order passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre (NFAC) is bad both in the eyes of law and on facts. 2. On the facts and circumstances of the case, the CIT(A). NFAC has erred both on facts and in law in confirming the action of the AO(CPC) of making the adjustment by exercising its powers beyond the scope of section 143(1) of the Income Tax Act. 3.(i) On the facts and circumstances of the case, the CIT(A), NFAC has erred both on facts and in law in confirming the addition of Rs. 1,00,00,000/- on account of corpus donation received during the year treating the same as income from other sources. (ii) That the above said addition has been confirmed ignorin....

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....pon the amended provisions of section 11(1)(d) of the Act and confirmed the addition made by the AO (CPC). 5. Against this order, assessee appealed before us. We have heard both the parties and perused the records. 6. Ld. Counsel for the assessee made his submissions as under :- "10. At the outset, it is submitted that genuineness of the corpus fund received during the year is not doubted by AO(CPC), and CIT(A). 11. It is also submitted that assessment in the case of assessee was framed under section 143(3) of the Act and during the course of assessment proceedings, Ld.AO via notice u/s 142(1) of the Act dated 18.12.2020, asked assessee to submit details of voluntary contribution of Rs. 1,00,00,000/- received during ....

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....specified in section 11 (5) of the Act is not applicable to A Y 2018-19 i.e. the assessment year under consideration In view of the above-mentioned submissions, the addition made AO(CPC) and confirmed by CIT(A) is liable to be deleted." 7. Per contra, ld. DR for the Revenue could not controvert the submissions of the assessee. 8. We find that the disallowance in this case has been done by ld. CIT(A) solely relying upon the amended provisions of section 11(1)(d) of the Act. As clear from the aforesaid submissions of the assessee in the instant assessment year, amended provisions of section 11(1)(d) were not applicable. The amended provisions of section 11(1)(d) were introduced by Finance Act, 2021 and made applicable from 01.0....