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2019 (9) TMI 1176 - AT - Income TaxClaim of accumulation u/s 11(2) - manually submission of Form No.10 - mandation to file Form No.10 electronically - Assessee's failure to spend 85% of the Total Income and the failure to comply with section 11(2) read with rule 17 of the Income Tax Rules, 1962 - Whether CIT(A) is erroneous for having considered the manually submitted Form No.10 filed before the due date of filing the Return of income for Assessment Year 2014-15 and thereby allowing the assessee accumulation claimed by it under section 11(2) of the Act.? HELD THAT - On a careful perusal of the Income Tax Rules, 1962 (in short the Rules ), we find that as rightly pointed out by the CIT(A), the requirement to mandatorily file Form No.10 electronically before the due date for filing the return under section 139(1) of the Act has come into effect by substitution of Rule 17 of the Rules by IT (First Amendment) Rules, 2016, w.e.f. 01.04.2016 i.e., it is applicable from Assessment Year 2016-17 onwards. Therefore, it is amply clear that the said requirement of the assessee having to mandatorily file Form 10 electronically was not applicable to those Assessment Years prior to Assessment Year 2016-17. The present appeal pertains to Assessment Year 2014-15 which is prior to the amendment, and therefore, in our view, the CIT(A) was correct in holding that in this year, the requirement to file Form No.10 electronically was not mandatory to the assessee in the case on hand CIT(A) has also rendered the factual finding that assessee has filed requisite Forms and the return of income within the due date for filing the return of income i.e., 30.09.2014 and therefore the assessee is eligible for accumulation under section 11(2) of the Act. In the circumstances, as narrated above, we find no reason for interference in the impugned order of the CIT(A) on this issue and therefore uphold his finding in the matter. - decided in favour of assessee.
Issues:
Revenue's appeal against the order of CIT(A) for Assessment Year 2014-15 regarding the manual submission of Form No.10 for accumulation under section 11(2) of the Act. Analysis: The Revenue contended that the CIT(A) erred in allowing accumulation claimed by the assessee under section 11(2) of the Act based on the manual submission of Form No.10, arguing that electronic filing was mandatory from Assessment Year 2014-15. However, the tribunal noted that the requirement to file Form No.10 electronically came into effect from Assessment Year 2016-17, as per the IT (First Amendment) Rules, 2016. Since the present appeal pertained to Assessment Year 2014-15, the tribunal upheld the CIT(A)'s decision that the electronic filing requirement was not applicable for that year. The tribunal also acknowledged that the assessee had submitted the necessary forms and returns within the due date, making them eligible for accumulation under section 11(2) of the Act. Consequently, the tribunal found no grounds for interference in the CIT(A)'s order and dismissed Revenue's appeal for Assessment Year 2014-15. In conclusion, the tribunal upheld the decision of the CIT(A) regarding the manual submission of Form No.10 for accumulation under section 11(2) of the Act for Assessment Year 2014-15. The tribunal clarified that the electronic filing requirement was not mandatory for that year and that the assessee had fulfilled the necessary criteria for accumulation. As a result, Revenue's appeal was dismissed, and the CIT(A)'s order was upheld.
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