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2019 (2) TMI 1438 - HC - Income TaxExemption u/s 11 - entitled for accumulation and carry forward the surplus amount when the assessee had not filed Form 10 within the due date prescribed - Information relevant to the claim of accumulation - whether the prescription to file Form 10 for the purposes of accumulation under Section 11 (2) of the Act is mandatory for the purpose of grant of exemption in terms of Section 11 of the Act, or only directory? - HELD THAT:- The Supreme Court, in the case of Commissioner of Income Tax v. Nagpur Hotel Owners' Association [2000 (12) TMI 99 - SUPREME COURT], considered the identical question and concluded that a claim under Section 11 of the Act would have to be considered by the assessing authority on the basis of the information supplied by the assessee at the time of assessment and if the relevant information to support such a claim was not available with the assessing authority, the same was liable to be rejected. In the instant case, we find that the Assessing Authority, the CIT (A) and the Tribunal have taken note of the resolution passed by the Board of Trustees dated 22.09.2003, proposing the accumulation of a sum of ₹ 4.10 crores for the purpose of construction of a building. As a fact, the prescribed Form 10 for accumulation has also been filed before the CIT (A). Requirement of filing Form 10 at the time of assessment is only directory and if it would suffice if the same were filed at the stage of appeal, so long as all relevant information in support of the claim for accumulation is furnished by the assessee along with the claim for consideration by the assessing authority. This conclusion is supported by a line of decisions, including that of the jurisdictional High Court in the case of CIT v. Jayant Patel, [1998 (9) TMI 6 - MADRAS HIGH COURT]. Thus information relevant to the claim of accumulation was furnished to the assessing officer at the time of assessment and there is thus substantial compliance of the provisions of Section 11 (2) of the Act. - Decided in favour of assessee.
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