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2020 (6) TMI 570 - AT - Income TaxExemption u/s 11 - Assessee did not file Form-10 along with the return of income but filed the same before the AO during the assessment proceedings - AO rejected the plea of the Assessee for accumulation for the reason that Form-10 did not specify the purpose for which the surplus income which is not spent will be utilized in future - HELD THAT:- It is a fact that along with the appeal memo filed in Form-36 the Assessee has also attached a copy of Form-10 filed before the AO. It is therefore, not correct on the part of the Tribunal to observe in the impugned order that Form-10 was not filed before the Tribunal. Apart from the above, also find that along with Form-10, a copy of the Board Resolution of the Assessee trust has been enclosed in which the purpose for which the accumulation is sought is clearly set out as “for construction of temple, ‘Upashraya, Dharmashala’ and objects of the trust”. It is thus, clear that the order of the Tribunal suffers from an error apparent on the face of the record which requires to be rectified. The claim of assessee for accumulation ought to have been accepted by the revenue authorities. Even in the order of assessment the AO has accepted that Form-10 was filed by the assessee and the only grievance was that the purpose for accumulation was not mentioned. When the purpose of accumulation as contained in the Board Resolution annexed along with Form-10 was brought to the notice of the ld. CIT(A), he also overlooked the same and concurred with the findings of the AO. Thus, the order of revenue authorities cannot be sustained and the assessee is therefore, entitled to the benefit of accumulation. - Decided in favour of assessee.
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