9911796707
TMI Blog2023 (12) TMI 1132X X X X Extracts X X X X X X X X Extracts X X X X ..... 6. The broad facts that are necessary to adjudicate the instant appeal are as follows: 6.1 The respondent/assessee is a charitable society registered with the Registrar of Society while also holding a registration under Section 12A of the Income-tax Act, 1961 [in short, "Act"]. 6.2 As per the Memorandum of association (MOA), the main aims and objects of the respondent/assessee include to make the best efforts to promote, protect, and advance the cause of women and girls; provide legal advice and aid to spouses involved in disputes; arrange talks; demonstrate low-cost nutritive diet; train economically weaker and destitute women under the aegis of various socio-economic schemes; and provide adult education. 6.3 In the AY in issue, the respondent/assessee filed its return of income (ROI) on 30.09.2008. It declared its income as 'nil'. 6.4. This ROI was processed under Section 143(1) of the Act. 6.5 Later on, the Assessing Officer (AO) noticed that in the preceding AY, the respondent/assessee had claimed that it had paid, as advance, Rs. 5,85,00,000/- to purchase an immovable property. The money spent was claimed as 'application of income' in AY 2007-08. 7. The record shows th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 11 of the Act, after allowing for accumulation under sub-section (2) of the said section. 14. The appellant/revenue filed an appeal against the order of the CIT(A) before the Income Tax Appellate Tribunal [in short, "ITAT"]. The Tribunal, via an order dated 23.02.2023, dismissed the appeal of the respondent/assessee. 15. Being aggrieved, the appellant/revenue has preferred the instant appeal. 16. Before one answers the issue, it would be useful to extract the relevant parts of Section 11 of the Act, as it would assist in concluding whether or not the impugned decision passed by the Tribunal needs interference: "Income from property held for charitable or religious purposes. 11. (1) Subject to the provisions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income- (a) income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India; and, where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income so accumulated or set apar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 [in short, "Rules"]. 19. The record also discloses that there is no doubt about the fact that a revised Form No. 10 was filed after the notice under Section 148 of the Act was issued, albeit, along with the ROI, in response to the said notice. Therefore, the point of inflection between the respondent/assessee and the appellant/revenue was whether a revised Form No. 10 could have been filed by the respondent/assessee during the reassessment proceedings. 20. As indicated above, to claim the benefit of the provisions of sub-Section (2) of Section 11, the respondent/assessee had to file a statement in the prescribed form, i.e., Form No. 10. The Tribunal has noted that there is no adverse finding by the AO concerning the fulfillment of conditions subject to which the accumulation of income was allowed under Section 11(2). 21. Insofar as the issue concerning the timing of the filing of Form No. 10 is concerned, i.e., in the course of reassessment proceedings, this stands covered by a decision of a coordinate Bench of this court rendered in Association of Corporation & Apex Societies of Handlooms case. For convenience, the relevant parts of the judgment are extracted hereafter: "5. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the above, we are of the opinion that the stand of the Revenue that the High Court erred in answering the first 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." On going through the above extract we find that the Supreme Court observed that it was necessary that 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 exclusion. Furthermore, once the assessment is so completed it would be futile to find fault with the assessing authority for having included such income in the assessable income of the assessee. The Supreme Court held categorically that without the particulars of this income as given in Form-10, the assessing authority cannot entertain the claim of the assessee under section 11 of the Act and therefore, compliance with the requirement of the Act will have to be at any time before t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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