2023 (8) TMI 1513

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.... u/s 263 of the Act and further erred in holding the assessment order dated 27.12.2019 passed by the Assessing Officer is not only erroneous but also prejudicial to the interest of the Revenue. 3. The appeal is barred by limitation. Reasons for delay in appeal duly considered and delay is condoned. 3. Representatives of both the sides were heard at length. Case records carefully perused. Relevant 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 wel....

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....enefit; (vi) To establish, support, maintain or grant aid to hospitals, medical schools and colleges, nursing houses, babies or old age homes, hospices, orphanage, gaushala, animal welfare and such other institutions or societies for public benefit as the Trustees may think fit and proper for the purpose of relief or aid to poor or needy and deserving persons; (vii) To establish, maintain and grant scholarships, prizes, stipends and grants-in-aid and loans with or without interest and with or without security 'as the Trustees may deem proper to poor or deserving persons; (viii) To establish, support, maintain and aid boarding houses and hostels and other institutions for boarding, lodging and needy and deserving persons; (ix) To....

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....t 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. Reliance was placed on certain judicial decisions. 8. Per contra, the ld. DR strongly supported the findings of the CIT(E). It is the say o....

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....essee explained that with deserving NGOs whose aims and objects that matches with objects of the trust, applies accumulated funds on the activities of the general public, utilities under the control and monitoring of the trustees. 12. This reply of the assessee was accepted by the Assessing Officer. 13. Before proceeding further, let us see the provisions of section 11(2) of the Act, which read as under: "Any amount credited or paid, out of income referred to In clause (a) or clause (b) of sub-section (1), read with the Explanation to that sub- section, which is not applied, but is accumulated or set apart, to any trust or Institution registered under section 12AA or to any fund or institution or trust or any university or other educati....