TMI Blog2021 (9) TMI 689X X X X Extracts X X X X X X X X Extracts X X X X ..... maximum amount which is not chargeable to income-tax in any previous year, the account of the Trust or Institution for that year have been audited by an Accountant as defined in the Explanation below section 288(2) of the Act, before the specified date referred to in section 44AB of the Act and the person in receipt of the income furnishes by that date the report of such audit in the prescribed form duly signed and verified by such Accountant and setting forth such particulars as may be prescribed. The order dated 19.2.2019 passed by the CIT (Exemptions) under section 119(2)(b) of the Act is part of record and the same has been relied on by the ld. CIT(A) in holding that the addition made by the Assessing Officer by denying the accumula ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue's appeal against the order of the ld. CIT(A), Lucknow, dated 16.07.2019, for assessment year 2016-17. 2. The brief facts of the case are that the Assessing Officer observed that the Assessee had a surplus of ₹ 19,71,42,456/-, for which, Form no. 10 was to be submitted online, as per the amended provisions of the Income Tax Act, 1961 and the Income Tax Rules 1962. On query, the assessee submitted before the Assessing Officer that Form no. 10 had been filed on 15.2.2017, which was subsequently found to be not filed due to technical error and the same had been finally submitted on 20.4.2017. The Assessing Officer held that in view of the provisions of section 13(9) of the Act, the benefit of exemption under section 11 of the Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at as per Para 4(1) of the CBDT Circular No. 10/2019 dated 22.05.2019 (APB:6), the CBDT has condoned, in general, the delay in filing of Form no. 10B; that the Return of Income had been e-filed on 15.02.2017, which was rejected/invalidated by the CPC, due to which reason, the ITR-7 was again e-filed on 31.03.2018 (APB:7 8); that in view of the above facts, the Audit Report in Form No. 10B has been obtained before filing of the return of income and has been e-filed as per provisions of Section 139(4) of the I.T Act as applicable for assessment year 2016-17; that in view of the aforesaid CBDT Circular, as stated in Para 4(i) thereof, the delay in filing of Form no. 10B has been condoned in general by the CBDT; that thus, there is no further r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent to which the income so accumulated or set apart is not in excess of fifteen per cent of the income from such property. 7. According to section 11(2) of the Act, where eighty-five per cent of the income is not applied for charitable purposes, the charitable Trust or Institution may accumulate or set apart, the whole or part of its income for application to such purposes. Such income, so accumulated, or set apart, shall not be included in the total income of the Trust in the year of receipt of income. Such person has to furnish a statement in the prescribed form, i.e., Form no. 10, and in the prescribed manner, to the Assessing Officer, stating the purpose for which the income is being accumulated or set apart and the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2)(b) of the Act in the assessee's own case, whereby the delay in filing Form no. 10 stood condoned by the CIT (Exemptions), and that therefore, the ld. CIT(A) was correct in allowing the appeal of the assessee. The above submissions have not been controverted before us. The order dated 19.2.2019 passed by the CIT (Exemptions) under section 119(2)(b) of the Act is part of record and the same has been relied on by the ld. CIT(A) in holding that the addition made by the Assessing Officer by denying the accumulation under section 11(2) of the Act, had become infructuous. It was, therefore, the ld. CIT(A) directed the Assessing Officer to allow the benefit of section 11 of the Act to the assessee and compute the income after allowing the ac ..... X X X X Extracts X X X X X X X X Extracts X X X X
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