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TMI Blog2024 (9) TMI 642X X X X Extracts X X X X X X X X Extracts X X X X ..... . In this regard, it is pertinent to note that there is no dispute regarding the fact that the assessee s application filed under section 11(3A) of the Act is pending consideration before the AO. Therefore, we find no infirmity in the findings of the learned CIT(A) in deleting the addition of Rs. 2,05,47,846 made by the AO, as section 11(3)(c) does not apply to the present case in view of the pendency of the aforesaid application under section 11(3A) of the Act. Further, in view of the aforesaid facts, the direction to the AO to consider the application of the assessee under section 11(3A) of the Act is also affirmed. As a result, Ground No. 1 raised in Revenue s appeal is dismissed. Non considering revised Form No. 10 for determining the accumulated funds available with the assessee under section 11(2) - We find that vide Form No. 10 filed by the assessee on 26/09/2018 the period of accumulation was stated to be ending on 31/03/2017. Similar to the contention in the year 2018-19, even in the assessment year 2017-18 we find that the resolution for accumulation was passed just 2 days prior, i.e. on 29/03/2017. Accordingly, for similar reasons stated above, we find merits in filing t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same has not been contested by the assessee during the assessment proceedings and neither taken up as a ground during appeal? 2 Whether, on the facts and in the circumstances of the case and in law, the NFAC is right in allowing the relief for accumulation of Rs. 4,00,00,000/- for the purpose of 'building fund' ignoring the fact the corrected Form 10 submitted by the assessee was filed belatedly and the power to condone the belated Form 10 lies only with jurisdictional PCIT/ CIT? 3 Whether, on the facts and in the circumstances of the case and in law, the Ld.CIT(A) is right in disallowing the addition of Rs. 10,9,601%- ignoring the fact that the assessee did not spent it before 31.03.2018 as per the Form 10 submitted by the assessee was filed belatedly and the power to condone the belated Form 10 lies only with jurisdictional PCIT/ CIT? 4. Whether, on the facts and in the circumstances of the case and in law the NFAC is right in disallowing the addition of Rs. 3,53,90,000/- ignoring the fact that the assessee did not spent it before 31.03.2017 as per the Form 10 submitted by the assessee, which was filed belatedly and the power to condone the belated Form 10 lies only with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11(1) of the Act. Upon perusal of the details of amounts set apart under section 11(2) of the Act in earlier years and the application made out of such accumulated funds in subsequent years, it was noted that during the financial year 2012-13, the assessee has accumulated Rs. 2,71,51,000 till the end of the financial year 2017 and out of the same, Rs. 2,05,47,846 remaining unutilised by the assessee. It was further noticed that the income accumulated under section 11(2) of the Act has to satisfy the conditions laid out under section 11(3) of the Act, failing which the amount accumulated shall be deemed to be the income of the assessee. Since the aforesaid conditions as laid out under section 11(3) of the Act were not satisfied, the AO held that the amount of Rs. 2,05,47,846 is the income of the assessee for the assessment year 2018-19 chargeable under section 11(3)(c) of the Act. Since the said amount was already added vide intimation issued under section 143(1) of the Act, the AO did not make any separate addition vide scrutiny assessment order. Apart from the above, it was observed from Form No.10 filed by the assessee for the assessment year 2017-18 that the assessee has accumul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ension and redevelopment work NOC from the Airport Authority of India is required, which is getting delayed. It was submitted that as a result, the funds accumulated could not be utilised within a period of accumulation. We find that vide submission dated 11/03/2021 filed before the AO, the assessee submitted that the construction activity has now commenced and a sum of Rs. 8,29,67,322 has already been utilised out of the accumulation made in the earlier year. The learned AR further submitted that the assessee furnished Form No. 10 originally before the due date, however, there was an error in stating the date up to which the accumulation was made, therefore, a corrected Form No. 10 was filed, which was treated as belated by the AO. 6. We have considered the submissions of both sides and perused the material available on record. As per the provisions of section 11(1)(a) of the Act, income derived from property held under trust wholly for charitable or religious purposes is not included in total income to the extent to which such income is applied for charitable or religious purposes in India, and where such income is accumulated or set apart for application to such purposes in Indi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide. In this regard, it is pertinent to note that there is no dispute regarding the fact that the assessee s application filed under section 11(3A) of the Act is pending consideration before the AO. Therefore, we find no infirmity in the findings of the learned CIT(A) in deleting the addition of Rs. 2,05,47,846 made by the AO, as section 11(3)(c) does not apply to the present case in view of the pendency of the aforesaid application under section 11(3A) of the Act. Further, in view of the aforesaid facts, the direction to the AO to consider the application of the assessee under section 11(3A) of the Act is also affirmed. As a result, Ground No. 1 raised in Revenue s appeal is dismissed. 8. From the perusal of the return of income filed by the assessee for the year under consideration, we find that the assessee claimed to have accumulated Rs. 4 crore under section 11(2) of the Act. The aforesaid fact is further evident from Schedule-1 of the return, on pages 14-15 of the paper book, wherein the details of the amount accumulated/set apart within the meaning of section 11(2) of the Act have been mentioned. Further, we find from Form No. 10 filed by the assessee on 26/09/2018 that the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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