TaxTMI 
TaxTMI 
2016 (4) TMI 414
X X X X Extracts X X X X
X X X X Extracts X X X X
....s. 1.17 crores pertaining to assessment year 1999-2000 need not be taxed in assessment year 2010-11. 3. The facts relating to issue of disallowance of unutilized amount taxed u/s.11(2) of the Act are that the assessee filed a statement showing accumulation and utilization of funds from assessment year 1999-2000 to assessment year 2010-11. The Assessing Officer arrived at the taxable amount of Rs. 1,17,69,950/- which is as under:- Gross Receipts for AY 1999-2000 Rs. 2,13,81,416 Less : 25% thereon Rs. 53,45,354 Rs. 1,60,36,062 Less : Revenue expenditure Rs. 68,04,607 Rs. 92,31,455 Less : Capital expenditure Rs. 28,06,859 Unutilized surplus Rs. 64,24,596 Less : 25% set apart Rs. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....g the claim of the assessee, he considered revised working for the purpose of accumulation of fund. Against this, the Revenue is in appeal before us. 5. We have heard both the parties and perused the material on record. We have gone through the details mentioned in the statement of accumulation and utilisation of funds for the Ays 2009-10 and 2010-11, which is enclosed as annexure 'A' & 'B' and form part of this order. 6. We have gone through the details mentioned in the statement of accumulation and utilisation of funds for the Ays 1999-2000 to 2010-11, which is enclosed as annexure 'D' and form part of this order. As seen from annexure 'D', for the A.Y. 1999-2000, the assessee had gross receipt of Rs.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....unt [pertaining to A.Y. 2000-01 and 2001-02 in assessment years 2005-06 & 2006-07, which is enclosed as Annexure 'E' &'F' respectively and form part of this order. On verification of returns of income for earlier years and the annexure detailing statement of accumulation and utilization of funds (Annexure 'D') it is seen that the unutilized amount of A.Y. 1999-2000 was never spent at all. 6.3 When the Assessing Officer expressed her desire to tax the unspent balance of A.Y. 1999-2000 in A.Y. 2010-11 as per sec.11(3)(c) of the Act, the assessee filed a revised computation of income from AY 1999-00 to 2010-11, revising the entire application of income and accumulation of income. However, the Assessing Officer did no....
X X X X Extracts X X X X
X X X X Extracts X X X X
....lication of accumulated income of A.Y. 1999-2000 in A.Y. 2005-06 & A.Y. 2006-07 is not in order. 6.5 It is trite law that each assessment year is an independent legal proceeding and the assessee has to claim the relevant exemption for each year separately by filing returns of income and making the necessary claims along with the return of income within the specified time limit for each assessment year. The claim of accumulation of income or exercising option is independent for each assessment year. The assessee cannot claim the application out of earlier year by filing a different statement of income during the scrutiny assessment proceedings for the subsequent assessment year. 6.6 In view thereof, the CIT(Appeals) observation that "h....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t the assessee is intending to purchase the land. However, if the assesseee is bona fide, the assessee should have produced the order issued from the CMDA on 19.3.2009 and the reason for delay in filing the said letter for such a long period till the Assessing Officer making the assessment for the assessment year 2010-11 is not acceptable. There exists no reason for such delay. We are not in a position to accept the submission of the assesseee. Accordingly, we are inclined to reverse the order of the CIT(Appeals) and restore that of the AO. 7. Next ground is with regard to allowing of depreciation when the costs of acquisition of assets were treated as application of income for the purpose of claiming exemption u/s.11 of the Act. 8. W....