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TMI Blog2023 (8) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... filed said Form No.10B and filed Rectification Petition u/s. 154. In our considered view, when the assessee is entitled for exemption u/s. 11 AO ought to have entertained Rectification Petition filed by the assessee when the assessee has filed relevant Form No.10B specifying the amount of income accumulated for specified purpose, for which, income has been accumulated. CIT(A) without appreciating the fact simply rejected the appeal filed by the assessee. Therefore, we are of the considered view that the issue needs to go back to the file of the AO, and thus, we set aside the order of the Ld.CIT(A) and restored the issue back to the file of the AO and direct the AO to re-consider the issue in light of relevant Form No.10B filed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le CIT(A) is not justified in relying on a circular issued much after all the assessment proceedings and rectification petition. 3. The honourable Supreme Court and in the case Mahendra Mills Ltd Vs Appellate Assistant Commissioner of Income Tax 099 ITR 0135 (1975) and the honourable Madras High Court in the case CIT Vs MRM Plantation P Ltd 240 ITR 0660 (1999) wherein it is held that the 'record' referred to in s. 154 of the Act is the record available to the officer exercising the powers under that section, at the time the proceedings for rectification. So the assessing officer is not justified in not considering the Form 10B while making the rectification petition. 4. The Assessment has been erroneously made under genera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld have taxed the income net of expenses and taxed at individual rates as laid out in CBDT Circular No: 320 dated 11/01/1982. To tax the entire gross receipts under maximum marginal rate under section 167A is totally unfair. The learned CIT(A) did not even consider this grounds of appeal while dismissing our appeal petition under section 246 of the Act. 9. The Appellant humbly plead the Honourable Bench to set aside the order under section 154 and approve the claim of application of Rs. 35,74,097/- and determine the income under the Provisions of Section 11 of the Act and pass such other or further orders as he may deem fit and proper in this case. 3. The brief facts of the case are that the assessee is a Trust registered u/s. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant Form No.10B. Thereafter, the assessee has filed Form No.10B on 12.06.2020 and filed Rectification Petition u/s. 154 of the Act. The AO rejected the petition filed by the assessee on the ground that there was no apparent mistake in the order passed by the AO u/s. 143(1)(a) of the Act. We find that the assessee is a registered Trust and eligible to claim exemption u/s. 11 of the Act. In the process, the assessee can also claim exemption towards income accumulated for specified purpose in Form No.10B. However, such Form should be filed along with return of income filed for relevant AY within due date specified u/s. 139(1) of the Act. In the present case, there is no dispute with regard to the fact that the assessee did not file Form No.10 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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