2023 (8) TMI 1513

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... documentary evidence brought on record duly considered in light of Rule 18(6) of the ITAT Rules. 4. Briefly stated, the facts of the case are that the assessee-society is registered u/s 12AA of the Act, with of the following objects: "(i) To help the community and nation at large and also to undertake activities relating to organization of welfare, art, cultural and social activities and involvement in other programmes of local/national/international significance. (ii) To encourage people to be self reliant and to undertake and assist projects, programmes and schemes for upliftment of the women and children of the nation in educational and social aspects; (iii) To provide relief and benefit in such form and manner as the Trustees may in their absolute discretion deem proper to the inhabitants of India or any other country displaced and distressed as a result of natural or other calamities such as earthquakes, tornado, famine, floods, fire epidemics, war, civil war or any other calamities and rehabilitate their families and dependents; (iv) To grant relief on the occasion of earthquakes, floods, famine and other occasions of calamities and gen....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....the Act. Return was selected for scrutiny assessment and assessment was completed accepting the returned income of the assessee vide order dated 27.12.2019. Assuming jurisdiction u/s 263 of the Act, the CIT(E) issued a show cause notice to the assessee, which reads as under: 6. It is the say of the ld. counsel for the assessee that during the assessment proceedings itself, the issues raised by the CIT(E) have been explained and considered by the Assessing Officer. Referring to the relevant para of the assessment order, the ld. counsel for the assessee read the relevant part and vehemently stated that what the CIT(E) is considering as donation, is not donation, but contribution in tandem with the deserving NGOs whose aims and objects matches with the objects of the trust and in collaboration with them, the said contribution was made, which the ld. CIT(E) is considering as donation, hit by the provisions of section 11(2) of the Act. 7. The ld. counsel for the assessee vehemently stated that the assessment order is neither erroneous nor prejudicial to the interest of the revenue and, therefore, the assumption of jurisdiction u/s 263 of the Act by the CIT(E) is bad in law. Relian....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (VI) or sub-clause (via) of clause (23C) of section 10 shall not be treated as application of income for charitable or religious purposes, either during the period of accumulation or thereafter." 14. The bone of contention is the donations made to Life Trust of India, ISKCON Food Relief Foundation, Population First and ApneAap Women's Collective - Victoria - Whether these donations can be considered as not to be donations as contended by the ld counsel and whether such donations can be considered as contributions to collaborators, who are working in tandem with the assessee. 15. At the outset, we fail to understand any difference between contribution and donation. Admittedly, the assessee has accepted that the amounts given to above persons are donations out of the accumulated funds of the assessee. Therefore, there should not be any dispute in so far as applicability of provisions of Section 11(2) of the Act are concerned. 16. There is no evidence brought on record by the assessee neither before the lower authorities nor before us to demonstrate ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....option to file your submission from the e-filing portal using the link: incometaxindiaefiling.gov.in Please refer to the subject cited above. 2. Income tax return for A.Y. 2017-18 declaring Nil income was e-filed by the assessee. The case was selected for complete scrutiny. A Notice u/s 143(2) was issued on 16.08.2018 and the case was completed u/s 143(3) on 27.12.2019 at returned income. 3.1 On perusal of the assessment records, it is noticed that during the year under consideration, as per the details of amount accumulated/set apart within the meaning of section 11(2) declared in schedule I of ITR 7 for A.Y. 2017-18, it is noticed that amounts of Rs.3,50,000/- Rs.9,00,000/-, Rs.3,00,000/- & Rs.25,50,000/- totaling to Rs.41,00,000/- accumulated/set apart within the meaning of section 11(2) during F.Y 2015-16 has been utilized/consumed as donation given to four other trusts. Amount of Rs.3.50,000/- was given to Life Trust India on 21.04.2016, Rs.9,00,000/- to ISKCON Food Relief Foundation on 20.02.2017, Rs.3,00,000/- to Population First on 06.09.2016 & Rs.25,50,000/- to ApneAap Note: If digitally signed, the date of digital signature may....