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TMI Blog2017 (4) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... 2000-01 and 2001-02. 2 The Revenue urges the following reframed question of law for our consideration: " Whether in the facts and in circumstances of the case and in law, is the Tribunal justified in holding that Form 10 prescribed in terms of Rule 17 of Income Tax Rules for the purpose of Section 11 of the Act would be valid even if filed during the Assessment Proceedings, consequent to a reopening notice under Section 148 of the Act, even if not filed with the return of income" 3 The Respondent-Assessee is a charitable trust, registered under Section 12A of the Act. For the subject Assessment Years, the Respondent-Assessee had not filed any return of income as, according to it, it had no income. This in view of the fact that the dona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the course of Assessment Proceedings, for the subject Assessment Year, i.e. Assessment Year 2001-02, and Assessment Year 2001-02, the Respondent-Assessee on 22nd August, 2006, filed Form 10 as prescribed under Rule 17 of the Income Tax Rules for the purpose of availing an accumulation of income under Section 11(2) of the Act. 6 The Assessing Officer by two orders both dated 28th December, 2006, for Assessment Years 2000-01 and 2001-02 rejected Form 10, as filed on the ground that the same was not filed along with the return of income. Consequently, the accumulation of income under Section 11(2) of the Act was not allowed. This resulted in two orders dated 28th December, 2006, one for Assessment Year 2000-01 bringing to tax an income of R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 139(1) of the Act to file a return of income. In this case, it is submitted that Form 10 has been filed much after the expiry of time to file return of income under Section 139(1) of the Act. Moreover, in this case, it is submitted that Form 10 was not filed along with return of income, thus the Respondent is not entitled to the benefit of accumulation of income under Section 11 of the Act. In any case, Form 10 was filed by the Respondent not during the assessment proceedings but during the reassessment proceedings. Therefore, it cannot be said to be in compliance of Rule 17 of the Rules. In the above circumstances, it is submitted that the order of the Tribunal is suspect and the appeal must be entertained. 10 As against the above, Mr. Ka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s decision on the issue that assessment proceedings would include reassessment proceedings for the purpose of filing Form 10 in terms of Rule 17 of the Rules. The decision of this Court on the issue that a return filed under subsection (4) of Section 139 of the Act will be dealt with as a return filed under Section 139(1) of the Act i.e. extends the time as permitted under Section 139(1) of the Act. In the present case, a return of income filed consequent to a reopening notice under Section 148 of the Act is to be treated as a return required to be filed under Section 139 of the Act. 4 Time is given to the Appellant Revenue to respond to the same, particularly why the Delhi High Court's decision should not commend to us. 5 Part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o be filed before completion of Assessment Proceedings were rendered in the context of fact that it was not filed during the Assessment Proceedings. Therefore, the fact situation being different, the observations therein cannot be applied to the present facts. In fact, we note that the Apex Court in the above case has observed that for the purposes of excluding an income of the trust from the net of taxation, the intimation in Form 10 has to be filed with the Assessing Officer before he completes the Assessment. In fact, it is the context of the above finding of the Apex Court, that it observed that Form 10 has to be filed before completion of Assessment Proceedings. In fact, the Delhi High Court in the case of Association of Corporation an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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