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2022 (4) TMI 635 - AT - Income TaxExemption u/s 11 - denial of exemption as Form No.10 was not filed within the stipulated time - HELD THAT:- Intimation required under section 11 has to be furnished before the assessing authority completes the concerned assessment because such requirement is mandatory and without the particulars of this income the assessing authority cannot entertain the claim of the assessee under section 11, therefore, compliance of the requirements of the Act will have to be any time before the assessment proceedings. Further, any claim for giving the benefit of section 11 on the basis of information supplied subsequent to the completion of assessment would mean that the assessment order will have to be reopened.” We find that the Assessing Officer did not consider this part of the judgement hence, the order of the assessing authority is erroneous. It is also noticed that Ld.CIT(A) on this issue has merely affirmed the view of the AO without adverting to the submissions of the assessee. This approach of the authorities below is contrary to the binding precedents. Undisputedly, the assessee had filed Form No.10 before the completion of assessment. Setting off of the earlier year excess utilization of funds - As per Assessing Officer, accumulation of income in excess of 15% of the income is allowed subject to certain conditions noticed and AO noticed that the application of income fall short of benchmark of 85% - As in RAGHUVANSHI CHARITABLE TRUST AND OTHERS [2010 (7) TMI 158 - DELHI HIGH COURT] answered the question in favour of the assessee that “whether a trust can be allowed to carry forward the deficit of current year and to set off of same against the income of subsequent years; in favour of the assessee and further question whether adjustment of deficit of current year against the income of subsequent year would amount to application of income of the trust for charitable purposes in the subsequent year within the meaning of section 11(1)(a) of the Act in favour of the assessee. Thus we direct the AO to allow the claim of the assessee regarding set off of excess utilization of funds and accumulation of income. Thus, Ground raised by the assessee are allowed.
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