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2019 (12) TMI 862 - AT - Income TaxAccumulation of fund u/s 11(2) - Failure to submit Form 10 - information related to accumulation and purpose for utilization of accumulated income - alternatively claim of exemption u/s 10(23C)(iiiad) - HELD THAT:- It is pertinent to note that as per section 11 of the Act, the assessee is required to exercise option for accumulation of funds in a prescribed format as prescribed under rule 17 of the Income Tax Rules (in short ‘the Rules’). The time limit prescribed under the rule 17 for exercising such option is the time limit as prescribed under sub-section 1 of section 139 of the Act for furnishing of return of income. Admittedly, the assessee failed to exercise this option as prescribed under the rule 17. CIT(A) has pointed out serious discrepancies in the resolution of the society for setting apart of fund. Therefore, the judgement of the Hon'ble Bombay High Court rendered in the case of CIT Vs. Nagpur Hotel Owners Association [1992 (10) TMI 12 - BOMBAY HIGH COURT] in our considered view would not be applicable as in this case, the foundation of exercising the option itself is found to be faulty. Therefore, we do not see any reason to interfere in this finding of the Ld. CIT(A). Same is hereby affirmed. Ground No.3 of the assessee’s appeal is rejected. Availability of exemption u/s 10(23C)(iiiad) - HELD THAT:- As relying on COUNCIL FOR THE INDIAN SCHOOL CERTIFICATE EXAMINATIONS VERSUS DIRECTOR GENERAL OF INCOME TAX [2012 (3) TMI 289 - DELHI HIGH COURT] we hereby direct the A.O. to grant exemption u/s 10(23C) of the Act and delete the addition.
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