Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (12) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (12) TMI 1275 - AT - Income TaxDenial of exemption u/s 11(2) - claim of the assessee was rejected primarily on the ground that the purpose of accumulation is not mentioned but the objects were mentioned in form 10 - HELD THAT:- Assessee trust has duly mentioned the purpose of accumulation i.e. to compensate the trading members or a constituents, where a trading member being declared a defaulter on the stock exchange. To our opinion, this was the sole object of the trust for which this protection fund was created and thus sufficiently satisfy the requirements of section 11(2) of the Act. We also note that similar claim of the assessee has been allowed in the earlier years by the Revenue. The case of the assessee finds support from the decision of BOCHASANWASI SHRI AKSHAR PURSHOTTAM PUBLIC CABLE TRUST [2019 (3) TMI 1405 - SC ORDER] held that non specification of purpose for which the funds were accumulated by assessee trust under section 11(2) would not be fatal to the exemption claimed. As relying on BHARAT KALYAN PRATISTHAN VERSUS DIRECTOR OF INCOME TAX (EXEMPTION) [2007 (1) TMI 98 - DELHI HIGH COURT] held that specification of certain purpose or purposes is needed for accumulations of the trust’s income under section 11(2) of the Act however, the details of the purposes for which the income was accumulated need not be specified. Accordingly, we set aside the order of Ld. CIT(A) and direct the AO to allow the claim of the assessee under section 11(2) of the Act. The ground NO.1 is allowed. Interest charged by the AO under section 234A - HELD THAT:- There is no delay in filing the return of income by the assessee trust. We have perused the provisions of section 234A of the Act and are of the opinion that the interest under section 234A is attracted only where the return is furnished after the due date as envisaged u/s 139(1) of the Act or is not furnished at all by the assessee. In the present case, the assessee has duly filed the return of income well within the time under section 139(1) - CIT(A) has not adjudicated the matter and simply directed the AO to dispose of the petition under section 154 of the Act. In our opinion, the charging of interest under section 234A is apparently wrong and against the provisions of the Act. Accordingly, we direct the AO to delete the interest charged. Interest charged under section 234C - CIT(A) instead of adjudicating the issue directed the AO to dispose of the pending application filed by the assessee under section 154 - HELD THAT:- We have perused the provisions of Section 243C of the Act and observed that the interest under section 234C of the Act is to be charged on the returned income and not the assessed income and therefore the interest under section 234C has wrongly been charged by the AO. Accordingly, we direct the AO to charge interest under section 234C of the Act as per the provisions of the Act. The ground No.4 of the appeal is allowed for statistical purpose Exemption under 10(23EA) - claim was not made by the assessee during the filing of return of income but as alternative at the appellate stage before CIT(A) - HELD THAT:- Issue is squarely covered in favour of the assessee by the order of the Hon’ble Bombay High Court in the case of DIT(E) vs. Exchange M/s. National Stock Investment Protector Fund Trust [2019 (1) TMI 799 - BOMBAY HIGH COURT] the appeal filed by the Revenue is dismissed.
|