TMI Blog2021 (10) TMI 509X X X X Extracts X X X X X X X X Extracts X X X X ..... as ready while filing return of income, but same could not be uploaded along with return of income due to technical glitches in web portal provided for filing return of income . The assessee has also filed copies of Form No.10 along with copy of resolution before us, as per which income has been accumulated for specified purposes vide Board resolution and further said sum was also invested in specified investments referred to u/s.11(5) of the Act. Therefore, we are of the considered view that the assessee is entitled for accumulation of income u/s.11(2) of the Income Tax Act, 1961. CIT(A) has erred in not considering claim of the assessee for accumulation of income u/s.11(2) of the Income Tax Act, 1961, even though the assessee made available such Form No.10 before the CIT(A) at the time of appellate proceedings. Hence, we set aside order passed by CIT(A) and restore the issue to the file of the Assessing Officer and direct the AO to allow benefit of accumulation of income u/s.11(2) of the Income Tax Act, 1961 by considering Form No.10 filed by the assessee along with other evidences. - Decided in favour of assessee. - I.T.A.No.320/Chny/2021 - - - Dated:- 8-10-2021 - Shri V. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax (Appeals), National Faceless Appeal Centre failed to note that Assistant Commissioner has not followed the section 143(1) and the proviso properly. (Ref: Statements of Facts- Ill 1st to 4th Para) III 1. The Commissioner of Income Tax (Appeals), National Faceless Appeal Centre failed to follow the decision in various case laws and circular of CBDT (Ref: Statements of Facts-Ill, 4th 5th Para) 4. Brief facts of the case are that the assessee is a society registered u/s.12AA of the Income Tax Act, 1961, as charitable trust. The assessee has filed its return of income for assessment year 2015-16 on 25.08.2015 and subsequently, revised return on 16.06.2016. The Assessing Officer processed return of income filed by the assessee u/s.143(1) of the Income Tax Act, 1961 on 11.10.2016 and determined total income at ₹ 27,88,457/-, after making additions towards capital gain income of ₹ 21,48,579/- derived from sale of property and further denied accumulation of income u/s.11(2) of the Income Tax Act, 1961 for ₹ 6,39,878/-. The assessee has filed rectification application u/s.154 of the Income Tax Act, 1961, but application filed by the assessee has been r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... FAC has erred in not considering issue in right perspective of law, even though the assessee has filed various evidences to prove that Form No.10 was available with the assessee, but same could not be uploaded along with return of income due to technical glitches in web portal. The learned AR further submitted that the ld.CIT(A), NFAC failed to consider issue on capital gain on sale of property as per law, even though the assessee has claimed exemption u/s.11(1A) of the Act, by investing sale consideration for acquiring another capital asset. The learned AR further referring to Form No.10 along with Board resolution submitted that the assessee has accumulated ₹ 6,39,878/- for specified purpose for which necessary formalities have been completed including investing said sum in specified investment and thus, the Assessing Officer ought to have allowed claim of the assessee for accumulation of income as per provisions of section 11(2) of the Income Tax Act, 1961. 7. The learned DR, on the other hand, strongly supporting order of the CIT(A) submitted that at the time of processing return u/s.143(1), Form No.10 was not available with the return of income filed by the assessee a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e consideration for acquiring another capital asset, then whole capital gain is exempt u/s.11(1A) of the Act. The Assessing Officer without examining those details has simply made adjustment towards capital gain while processing return u/s.143(1) of the Income Tax Act, 1961. Therefore, we are of the considered view that the Assessing Officer as well as learned CIT(A) has erred in not considering detailed reasons given by the assessee for claiming exemption from capital gain. Hence, we direct the Assessing Officer to allow exemption claimed u/s.11(1A) of the Act in respect of reinvestment of sale consideration for acquiring another capital asset. 10. As regards accumulation of income u/s.11(2) of the Income Tax Act, 1961, it was claim of the assessee before the learned CIT(A) that although, the assessee has accumulated income and complied with provisions of section 11(2) by passing Board resolution, but Form No.10 could not be uploaded along with return of income due to technical glitches in web portal. Although, the assessee has explained reasons for not filing Form No.10 along with return, the CIT(A) has rejected explanation filed by the assessee and confirmed additions made to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aritable purposes in subsequent years, in case trust or institution is not able to apply its income in full during the relevant financial year. Therefore, while considering such beneficial provision, the CIT(A) should have considered issue without going into technicalities or procedural lapses. In this case, the assessee has made available Form No.10 before the CIT(A), but he rejected Form No.10 filed by the assessee. The Hon ble Jurisdictional High Court of Madras in the case of Chandraprabhuji Maharaj Jain Vs. DCIT in TCA No.517 of 2019 dated 26.07.2019 had considered a similar issue of belated filing of Form No. 10 for accumulation of income u/s.11(2) of the Act and held that when the assessee was entitled to statutory benefit it was incumbent upon concerned authority to examine admissibility of benefit than to foreclose assessee on technicalities. 12. In this case, the assessee claims that requisite Form No.10 was ready while filing return of income, but same could not be uploaded along with return of income due to technical glitches in web portal provided for filing return of income . The assessee has also filed copies of Form No.10 along with copy of resolution before us, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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