TMI Blog2024 (4) TMI 194X X X X Extracts X X X X X X X X Extracts X X X X ..... is filed before the completion of the assessment. Thus we hold that the assessee cannot be denied the benefit of section 11(2), merely on the reasoning that form 10 was filed by the assessee belatedly in the given facts and circumstances. Decided in favour of assessee. Amount accumulated in the earlier year has not been shown as income under the provision of section 11(3) - grievance of the revenue that the assessee has re-accumulated the fund which was to be treated as income under the provision of section 11(3) - HELD THAT:- This finding of the revenue is contrary to the facts available on record. From the above form 10, it is clearly spelt out that the fund was accumulated out of the current year gross receipt. Thus, it can be safely in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... order of the Ld. CIT(A), the assessee is in appeal before us. 6. The Ld. AR before us filed a paper book running from pages 1 to 25 and contended that the form 10 was filed before the completion of the assessment and therefore, the assessee cannot be denied for the benefit provided under section 11(2) of the Act. 7. On the other hand, the Ld. DR vehemently supported the order of the authorities below. 8. We have heard the rival contention of both the parties and perused the materials available on record. Admittedly, the form 10 was filed by the assessee claiming the exemption of Rs. 25,22,300/- u/s 11(2) of the Act after the due date of return filing but before the completion of the assessment. The Hon ble High Court of Gujarat in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent does not arise at all. As a matter of fact, this benefit of excluding this particular part of the income from the net of taxation arises from Section 11 and is subject to the conditions specified therein. Therefore, it is necessary that the assessing authority must have this information at the time he completes the assessment. In the absence of any such information, it will not be possible for the assessing authority to give the assessee the benefit of such exclusion and once the assessment is so completed, in our opinion, it would be futile to find fault with the assessing authority for having included such income in the assessable income of the assessee. Therefore, even assuming that there is no valid limitation prescribed under the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ars under consideration. Thus, evidently, the requirements of section 11(2) of the Act had been complied with before the completion of the assessments. Therefore, while completing the assessments for the assessment years under consideration, the Assessing Officer had the necessary information in respect of the claim for exemption under section 11 of the Act made by the assessee before him. Thus, this is not a case where information in respect of the claim of the assessee for giving benefit of section 11 of the Act was furnished after the assessments for the relevant assessment years were completed. Under the circumstances, the present case is squarely covered by the aforesaid decision of the Supreme Court. The assessee was, therefore, entit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... out the fund accumulated in the earlier year. Thus, according to the assessee the amount accumulated in the earlier year was duly offered to tax. However, the AO dis-agreed with the submission of the assessee by observing as under: From the income Expenditure, it is seen that during the year the assessee has received Rs. 44,54,163/- as revenue receipts, out of these receipts assessee has made application for Rs. 28,16,959/- at 63,243% which was below 85% of the receipts. Therefore, assessee can accumulate only Rs. 9,69,080/- (85% of Rs. 44,54,163 comes to Rs. 37,86,038 - 28,16,959) only. However, the assessee has accumulated Rs. 25,23,000/- during the F.Y 2015-16 relevant to A.Y 2016-17. from the above, it is seen that the assessee has re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 26,000/- was accumulated under section 11(2) of the Act, out of the receipt pertaining to the year in dispute. Thus, it was contended by the ld. AR that the amount accumulated in the earlier year has been duly incurred in the income and expenditure account. The fund has been applied in the year under consideration amounting to Rs. 28,16,959/- which also represents the expenditure out of the accumulated fund. 14. On the other hand, the Ld. DR vehemently supported the order of the authorities below. 15. We have heard the rival contentions of both the parties and perused the materials available on record. It is the grievance of the revenue that the assessee has re-accumulated the fund which was to be treated as income under the provision of se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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