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| The Tax Publishers2020 TaxPub(DT) 1768 (Ind-Trib) INCOME TAX ACT, 1961
Section 263 Section 11(2)
In line with submission assessee-trust that Rs. 5 crores had been merely set apart for the purpose of Oriental University being a separate entity and no such sum was credited or paid to any institution, matter regarding allowability of accumulation undr section 11(2) as impugned by CIT in the course of exercise of jurisdiction under section 263 was referred back to CIT for adjudication afresh.
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Revision under section 263 - Erroneous and prejudicial order - CIT impuging allowability of accumulation undr section 11(2) -
CIT invoked jurisdiction under section 263 on the ground that assessee had set apart Rs. 5.50 crores under section 11(2) for several purposes which included for the purposes of Oriental University, which was an University of Oriental Group. The Oriental University was a separate entity in itself having separate PAN and thus accumulation under section 11(2) was not allowable to the assessee, however, same was disallowed by AO and, therefore, assessment order was erroneous and prejudicial to the interests of revenue. Assessee contended that provisions of section 11(3) sub-clause (d) speaks that 'is credited or paid to any trust or institution registered under section 12AA or to any fund or institution or trust or any University or other educational institution or any hospital or other medical institution referred to in sub-clause 94) or sub-clause (5) or sub-clause (6) or sub-clause (6A) of clause (23C) of section 10 assessee's case, no such sum was credited or paid to any trust or institution and amount was merely set apart. Held: There was merit into the contention of assessee. Therefore, impugned order was restored to CIT to decide afresh after considering submissions of assessee and examining the records.
REFERRED :
FAVOUR : Matter remanded.
A.Y. : 2013-14
IN THE ITAT, INDORE BENCH
KUL BHARAT, J.M. & MANISH BORAD, A.M.
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