IN THE INCOME TAX APPELLATE TRIBUNAL “F” BENCH, MUMBAI BEFORE SMT. BEENA PILLAI (JUDICIAL MEMBER)

&

SHRI MAKARAND VASANT MAHADEOKAR (ACCOUNTANT MEMBER)

Assessment Year: 2017-18 JM Financial Foundation Vs. Income Tax Officer

141, Maker Chambers III (Exem.), Ward -1(4), Nariman Point Mumbai Mumbai - 400021 [PAN: AAATJ2474M]

(Appellant) (Respondent)

Assessee by Dr. K Shivram, A/R Revenue by Ms. Kavitha Kashik, Sr. DR Date of Hearing 10.12.2025 Date of Pronouncement 29.12.2025 ORDER Per Bench:

Present appeal filed by assessee arises out of order dated

15/08/2025 and 16/08/2025 passed by NFAC, Delhi [hereinafter “the Ld. CIT(A)”] for assessment years 2017-18 and 2018-19 respectively, on the following grounds:-

Assessment Year – 2017-18 “1. That on the facts and circumstances of the case and in law the Ld. National Faceless Appeal Centre (NFAC) has erred on facts and in law in confirming reopening the assessment of the appellant u/s. 147 on the ground of addition of CR contribution received during the year without appreciating that there did not exist any reason to believe that income escaped assessment and reopening is on the basis of borrowed satisfaction and hence reopening of assessment is bad in law.

2. That on the facts and circumstances of the case and in law the Ld. National Faceless Appeal Centre (NFAC) has erred in confirming order as A.O. holding that the CSR fund received by the Appellant amounting to Rs. 11,46,00,000/- is to be treated as income under section 11 without appreciating that said funds were given in accordance with the requirements of Companies Act, 2013 and said funds are in the nature of corpus donation provided by the Donors with specific directions regarding its utilisation and were thus not voluntary in nature and it did not have the character of income of the trust being involuntary and were capital in nature and were thus treated as earmarked restricted fund in the balance sheet as per the relevant accounting standards issued by ICAI and hence the addition of Rs. 11,46,00,000/- may be deleted.

3. Without prejudice to above, the learned NFAC failed to appreciate that CSR funds accumulated during the year were spent in subsequent years and thus there was effective compliance of provisions of Section 11(2) & 11(1) and the non-intimation of accumulation u/s. 11(2) & 11(1) in prescribed form in the facts of the present case cannot result in denial of exemption u/s. 11 and hence the addition of Rs. 11,46,00,000/- may be deleted.

4. The appellant craves leave to add, amend, alter or delete any of the above grounds of appeal.”

Assessment Year – 2018-19 “1. That on the facts and circumstances of the case and in law the Ld. National Faceless Appeal Centre (NFAC) has erred on facts and in law in confirming reopening the assessment of the appellant u/s. 147 on the ground of addition of CSR contribution received during the year without appreciating that the reopening of assessment was on the basis of change of opinion and further reopening on the basis audit objection in the present case is not in justified and hence reopening of assessment is bad in law.

2. That on the facts and circumstances of the case and in law the Ld. NFAC has erred in issuing notice under section 148 of the Act without fulfilling the requirement of section 151A of the Act and is thus bad in law. 3. That on the facts and circumstances of the case and in law the Ld. National Faceless Appeal Centre (NFAC) has erred in confirming order of A.O. holding that the CSR fund received by the Appellant amounting to Rs. 15,65,17,000/- is to be treated as income under section 11 and unspent CSR contribution amounting to Rs. 14,18,78,917/- was to be accumulated as per section 11(2) without appreciating that said funds were given in accordance with the requirements of Companies Act, 2013 and said funds are in the nature of corpus donation provided by the Donors with specific directions regarding its utilisation and were thus not voluntary in nature and it did not have