2025 (10) TMI 292

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....gnizance under Section 263 and setting aside the assessment order passed under Section 143(3) of the Income Tax Act. 3. The brief facts of the case are that assessee has filed its return of income on 30.10.2017 declaring total income at Rs. 54,36,894/-. However, this return was revised and 'nil' income was declared which was accepted under Section 143(3) of the Act. The case of the assessee was subsequently selected for scrutiny assessment, and an assessment was passed on 02.12.2019 under Section 143(2) of the Income Tax Act. The ld. AO has accepted the revised return submitted by the assessee. 4. The assessee is a society registered under Himachal Pradesh Societies Registration Act, 2006. The primary object of the Society is to promo....

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....Finance (CBDT) dated 22.12.2017. Copy of this Notification is available at page No.15 of the Paper Book which read as under : Government of India Ministry of Finance (Department of Revenue) (Central Board of Direct Taxes) NOTIFICATION New Delhi, the 22^nd December, 2017 S.O. .......(E).-In exercise of the powers conferred by clause (46) of section 10 of the Income-tax Act, 1961 (43 of 1961), the Central Government hereby notifies for the purposes of the said clause, the 'Himachal Pradesh Computerization of Police Society', a body established by the Government of Himachal Pradesh, in respect of the following specified income arising to that body, namely:- (a) amount received in the form of Grant-in-aid; an....

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....ice (Crime) Shri Arul Kumar, IPS vide his letter dated 17.03.2022 written to Pr. Commissioner of Income Tax. The relevant part of this letter read as under : "..................... 4. In that background in mind, as the assessee is a wing of the government, though registered as Society under the Societies Act, the assessee applied for exemption under section 10(46) of the Income Tax Act, 1961. The Government of India through the Central Board of Direct Taxes issued a notification dated 27.12.2017 deemed to be applicable from the assessment year 2013-14 till assessment year 2017-18, whereby following income was notified to be exempted:- (a) Amount received in the form of grant-in-aid; and (b) Interest accru....

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.... ..................................... ....................................." 7. On the strength of the Notification coupled with the explanation of CCTNS Fund, it was submitted that the grant-in-aid and alleged interest income accrued on that grant-in-aid will be characterized as single item and both are exempt under the notification issued by the CBDT. 8. The CIT-DR, on the other hand relied upon order of the CIT. He submitted that assessee itself first recognized the interest income separate to the grant-in-aid and offer it for taxation. The interest income is a second degree of income. Exemption was granted on the grant-in-aid but one unutilized amount of that aid is deposited in the bank account as FDR, then int....