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2022 (9) TMI 583 - AT - Income TaxExemption u/s 11 - Application of income - amount is shown under the heading “sundry debtors” but no capital expenditure was incurred as stated by the assessee - assessee has also not filed Form-10 to claim accumulation U/s. 11(2) of the Act while filing the return of income U/s. 139(1) - assessee has not filed condonation of delay petition before the Ld. CIT as per the Circular No. 7 of 2018, dated 20/12/2018 - HELD THAT:- Even though the claim of the assessee is that there is an expenditure incurred during the impugned assessment year and considered as advances since the invoices for the supply of materials have been received in the subsequent financial year. The invoices are also accounted in the AY 2017-18 only. The assessee has also failed to upload Form-10 within the due date prescribed U/s. 11(2) r.w.s 139(1) of the Act. The Ld. AR also failed to demonstrate before us whether the same expenses have been claimed in the AY 2017-18 also. No documentary evidences are produced before us for non-claiming of the same expenditure in the AY 2017-18. The Hon’ble High Court of Kerala in the case of CIT vs. Shree P. Subramoniam Religious Trust [2008 (12) TMI 374 - KERALA HIGH COURT] has laid down that merely an advance cannot be treated as the actual application of funds that this advance would be utilized for the purchase of cement later. In view of the above discussions, we are of the considered view that since the assessee has neither expended the money during the relevant assessment year nor filed Form-10 within the due date prescribed U/s. 139(1) of the Act, the exemption claimed by the assessee is not valid in law and hence the grounds raised by the assessee are dismissed.
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