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2021 (10) TMI 509 - AT - Income TaxBenefit of accumulation of income u/s.11(2) - denial of claim on non-submission of Form No.10 along with return of income - whether intimation issued u/s.143(1) is an assessment and the Assessing Officer can make adjustment towards rejection of accumulation of income u/s.11(2) ? - HELD THAT:- Except as provided under Explanation to section 143(1), no adjustments can be made to total income. In this case, the Assessing Officer has made adjustment to total income by rejecting accumulation of income u/s.11(2) and said adjustment is not in accordance with law. It is also an admitted fact that an appeal being continuation of original proceedings, appellate authority has co-terminus and co-extensive powers that of the Assessing Officer. Therefore, when the assessee has filed Form No.10 before the CIT(A),NFAC, he ought to have admitted Form No.10 filed by the assessee to consider accumulation of income u/s.11(2). See HARDEODAS AGARWALLA TRUST [1991 (7) TMI 22 - CALCUTTA HIGH COURT] 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, 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.
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