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2015 (12) TMI 350 - ITAT CHENNAI

2015 (12) TMI 350 - ITAT CHENNAI - TMI - Disallowance of amount claimed as accumulation and amount claimed as set apart for the assessment years 2008-09 and 2009-10 respectively u/s.11(2) - Held that:- In the present case, though the assessee filed Form-10 during the time of assessment, setting apart amount, the period etc. are not shown and the columns in the form to be filled are left blank. The contention of the ld. AR is that though there were discrepancies in Form-10, it should be considere .....

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in our opinion, the orders of the lower authorities are justified in dismissing the appeal of the assessee. - Decided against assessee - ITA Nos. 2683 & 2684/Mds/2014 - Dated:- 23-9-2015 - Chandra Poojari, AM And Challa Nagendra Prasad, JM For the Appellant : Shri S Sridhar, Adv For the Respondent : Shri A B Koli, JCIT ORDER Per Chandra Poojari, Accountant Member These appeals by the assessee are directed against different orders of the Commissioner of Income-tax(Appeals) dated 12.08.2014 for t .....

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- for the assessment years 2008-09 and 2009-10 respectively u/s.11(2) of the I.T. Act. 3. The facts as narrated for the assessment year 2008-09 are that the assessee is a trust registered u/s.12A of the Act with effect from 1.4.2007. In the return of income filed for the assessment year 2008-09, the assessee has claimed the income of ₹ 69,57,245/- as exempt. The assessee claimed ₹ 10,43,587/- as accumulation @ 15% and the remaining ₹ 59,13,658/- as accumulated or set apart for .....

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re, is not eligible for accumulation of 15%. Accordingly, the AO treated the amount of ₹ 10,43,587/- claimed as exempt as income of the assessee. 3.1 Further, the assessee claimed that an amount of ₹ 59,13,658/- has been set aside for specified purposes u/s.11(1) and claimed that there is no violation of any provisions. According to the AO, it is mandatory for the assessee to specify by notice in writing to the AO, the purpose for which the income is being accumulated or set apart an .....

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setting apart the amount, the period etc. are not mentioned and the columns in the form filed are left blank. Further, as per clause (b) of sec.11(2) of the Act, the money so accumulated is to be invested in the modes specified in sec.11(5) of the Act. But this was not done by the assessee. Being so, the deductions claimed by the assessee as accumulation being 15% and the balance as set apart are not allowable in this case. Accordingly, the AO denied the benefit in both the assessment years und .....

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t to be given to Form-10. According to the ld. AR, this view is also supported by the Supreme Court in the case of CIT v. Nagpur Hotel Owners Association (247 ITR 201), wherein it was held as under : "On-going through the above extract, we find that the Supreme Court observed that it was necessary the assessing authority must have the information under Form-10 at the time he completes the assessment and in its absence it is not possible for the assessing authority to give benefit of such ex .....

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s are completed. The Supreme Court also observed that any claim for giving the benefit of sec.11 on the basis of information supplied subsequent top the completion of assessment would mean that the assessment order will have to be reopened. He Supreme Court noticed that the Act did not contemplate such re-opening of the assessment." 5. On the other hand, the ld. DR relied on the orders of the lower authorities. 6. We have heard both the parties and perused the material on record. As seen fr .....

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the ld. AR is that though there were discrepancies in Form-10, it should be considered rectified in view of resolution passed. The resolution passed does not show the name of the assessee as well as the period. Thus, the resolution is also defective and it is not having all the information required. Further, it did not comply with the requirements of sec.11(2) of the Act, which reads as follows : "11(2) [Where [eighty-five] per cent of the income referred to in clause (a) or clause (b) of .....

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such person specifies, by notice in writing given to the [Assessing] Officer in the prescribed manner, the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years; (b) the money so accumulated or set apart is invested or deposited in the forms or modes specified in sub-section (5)]" 7. There is no dispute that it is mandate of sec.11 of the Act to specify the purpose and per .....

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