TMI Blog2013 (1) TMI 542X X X X Extracts X X X X X X X X Extracts X X X X ..... before the completion of the assessment, the benefit under the provisions of Section 11 for accumulation of profits had been rightly denied by the authorities below - against the assessee. - ITA No. 870 of 2010(O&M) - - - Dated:- 7-11-2012 - MR. AJAY KUMAR MITTAL AND MR. GURMEET SINGH SANDHAWALIA JJ. Present:- Mr. H.N. Mehtani, Advocate for the appellant. Mr. Tejinder K. Joshi, Advocate for the respondent. AJAY KUMAR MITTAL, J. 1. This order shall dispose of ITA Nos.870 and 871 of 2010 as learned counsel for the parties are agreed that identical questions of law and facts are involved in both the appeals. However, the facts are being extracted from ITA No.870 of 2010, which may be briefly noticed. 2. ITA No.870 of 2010 h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 12A of the Act and hence is eligible for exemption of its income as per provision of Sections 11 and 12 of the Act. During the course of assessment proceedings under section 143(3) of the Act, it was submitted before the Assessing officer that the scope of proceedings before the Assessing officer was limited to the extent of examining whether 85% of the amount of interest was utilized for the purpose of Institution or not. Vide order dated 26.12.2008, Annexure A.1, the Assessing officer extended the scope of reassessment proceedings and assessed the income at Rs.1,22,22,280/- by making certain additions and by denying the exemption claimed for accumulation of unspent amount on the ground of non-filing of Form No.10 under the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as under:- 5. It is abundantly clear from the wordings of sub-section (2) of Section 11 that it is mandatory for the person claiming the benefit of Section 11 to intimate to the assessing authority the particulars required, under Rule 17 in Form No.10 of the Act. If during the assessment proceedings the Assessing Officer does not have the necessary information, question of excluding such income from assessment does not arise at all. As a matter of fact, this benefit of excluding this particular part of the income from the net of taxation arises from Section 11 and is subjected to the conditions specified therein. Therefore, it is necessary that the assessing authority must have this information at the time he completes the assessment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rst question in favour of the assessee is correct, and we reverse that finding and answer the said question in the negative and against the assessee. In view of our answer to the first question, we agree with Mr. Verma that it is not necessary to answer the second question on the facts of this case. 7. Following the aforesaid judgment, this Court in Simla Chandigarh Diocese Society's case (supra) recorded as under:- (i) that the Commissioner (Appeals) had observed that the assessee modified Form No.10 in the course of assessment proceedings. The modified Form No.10 had been rejected by the Assessing Officer on the ground that there was no provision in the Act for revising Form No.10. It was held that there was no specific bar prohib ..... X X X X Extracts X X X X X X X X Extracts X X X X
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