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TMI Blog2023 (7) TMI 739X X X X Extracts X X X X X X X X Extracts X X X X ..... to as 'the Act') relating to the Assessment Year (A.Y) 2019-20. 2. The brief facts of the case is that the assessee filed its Return of Income for the Assessment Year 2019-20 on 24-09-2019 declaring total income of Rs. 9,400/- and then filed revised return on 18-02- 2020 along with Form No. 10 namely "Statement of income accumulated by the Trust or set apart for carrying out the purpose of the Trust" as required u/s. 11(2) of the Act. The return was processed by CPC, Bengaluru vide Intimation u/s. 143(1) dated 18- 05-2020 denying the benefit of section 11 of the Act on the ground that Form No. 10 not filed with Return of Income and demanded a tax of Rs. 3,94,780/-. 2.1. The assessee filed a Rectification Petition on 27-06-2020 informing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d income of the Appellant by way of intimation u/s 143(1) of the Act and in denying claim of deduction of Rs. 17,00,000/- u/s 11(2) of the Act to the Appellant, failing to appreciate that this was not a case of prima facie adjustment permissible u/s 143(1)(a). 2. On merits, the Learned Commissioner of Income-tax (Appeals) - NFAC, Delhi erred in confirming action of assessing officer in making addition of Rs. 17,00,000/- by disallowing claim of accumulation made u/s 11(2) of the Act by the Appellant in the return of income filed for the year. 3. The Learned Commissioner of Income-tax (Appeals)- NFAC, Delhi failed to appreciate that the Appellant had duly filed Form 10 alongwith revised return of income u/s 139(5) of the Act. 4. The app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is noticed that the assessee Trust has not invested the funds in specified modes, but further verification of copies of fixed deposits of Bank of Baroda of Rs. 16,00,000/- and Rs. 7,00,000/-. It is noticed the same were being invested during the next financial Year 2019-20. Thus the assessee Trust failed to invest the accumulation u/s. 11(2) of the Act of Rs. 17,00,000/- in specified modes as per section 11(5) of the Act within the stipulated time. Therefore the CIT(Exemption) not satisfied with the reasons added by the assessee and rejected the condonation of delay in filing Form 10 for the Assessment Year 2019-20. Therefore the rejection of exemption made by the Assessing Officer does not require any interference and the assessee appeal i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eet of the year ended 31.03.2020. Therefore the findings arrived by the Ld. CIT(Exemption) is not correct in law. Further though the assessee filed Form No. 10 belatedly along with the Revised Return, however Form No. 10B which was filed along with the original return also certifies the amount of accumulation made by the assessee Trust. Without looking into the same, the assessee was denied the benefit of exemption u/s. 11 of the Act, which in our considered opinion is not correct in law. 6.1. The Hon'ble Supreme Court of India in the case of Nagpur Hotel Owners Association (cited supra) held as follows: ".....5. 5. It is abundantly clear from the wordings of sub-s. (2) of s. 11 that it is mandatory for the person claiming the benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tional High Court in the case of Trust For Reaching The Unreached Through Trustee (cited supra) held as follows: "......33. Having given our due consideration to all the relevant aspects of the matter, we are of the view that the approach in the cases of the present type should be equitious, balancing and judicious. Technically, strictly and liberally speaking, the respondent might be justified in denying the exemption under section 12 of the Act by rejecting such condonation application, but an assessee, a public charitable trust past 30 years who substantially satisfies the condition for availing such exemption, should not be denied the same merely on the bar of limitation especially when the legislature has conferred wide discretionary ..... X X X X Extracts X X X X X X X X Extracts X X X X
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