9911796707
TMI Blog2021 (9) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... The assessee has been granted registration U/s.12A of the Income Tax act, 1961 (Act) by the CIT(E), Bengaluru, w.e.f. 01.03.2002. For Assessment Year 2014-15, the assessee filed return of income on 10.11.2015 declaring a total income of Rs. 29,68,920/-. The income of the assessee before application of income for charitable purpose as per the audited books of account was a sum of Rs. 15,94,43,856/-. The assessee claimed a sum of Rs. 2,39,16,578/- as accumulation of income for charitable purpose in future as permitted under section 11(1)(a) of the Income Tax Act, 1961(hereinafter called 'the Act'). The said provisions permits accumulation of income to the extent of 15% for application for charitable purpose in future. The audit repor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Office it is seen that intimation u/s. 143(1) for AY 2014-15 the accumulation of 15% claimed u/s 11(1)(a) amounting to 2.69,33,919 is correctly allowed on the income of Rs. 4,62,26,127/- as per the Return of Income filed by the assessee (Copy enclosed). Vide acknowledgment no. 883115941101115. Since there is no error apparent on record your request for rectification of the above order cannot be considered and "our application for rectification u/s 154 dated 21.02.2019 is hereby rejected." 6. Aggrieved by the aforesaid order of the AO, assessee preferred appeal before the CIT(A) contending that accumulation at 15% has to be computed on the gross receipts in terms of section 11(1)(a) of the Act and not on the net receipts as computed by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itable Trust (1995) 129 CTR 2015 (SC) has held that under section 11(1)(a) of the Act, the assessee is entitled to accumulate 15% of the gross receipts before application and not on the amount remaining after expenditure for charitable purpose out of the income. Learned Counsel also relied on the decision of the Hon'ble Supreme Court in the case of CIT Vs. Programme for Community Organisation (2001) 116 taxman 608 (SC). Learned Counsel also brought to our notice of the CBDT's Circular No.204 dated 24.07.1976 wherein the aforesaid aspect was clarified by the CBDT. He also relied on CBDT's Circular No.68 dated 17.11.1971 wherein the CBDT directed that the mistake arising as a result of a subsequent interpretation of law by the Supreme Court w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uring this year 154,361,065 5,082,791 159,443,856 11. These figures are supported by the receipts and payments account of the assessee which is placed at pages 39 and 40 of the assessee's Paper Book. In Form 10B, copy of which is at page 55 of the assessee's Paper Book, the accumulation under section 11(1)(a) of the Act has been claimed at Rs. 2,39,16,578/-. In the light of the above factual position, we find no basis for the AO to have made the impugned adjustment under section 143(1) of the Act. The law is well settled that the accumulation of 15% under section 11(1)(a) of the Act has to be computed on the income (gross receipts) before application i.e., on the gross receipts and not on the amount remaining after expenditure for cha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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