TaxTMI 
TaxTMI 
2019 (1) TMI 1083
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....filed its return of income for assessment year 2014-15, declaring its taxable income as NIL while claiming exclusion of a sum of Rs. 2,30,32,139/- having been set apart to be used for specific purposes. 3. During the course of assessment proceedings, the assessing officer issued a notice dated 21.10.2016 inter alia asking as to why the amount of Rs. 2,30,32,139/- remained unutilized may not be added to assessee's income. The assessee thereafter filed reply, requisite Form No.10 and resolution of the Society on 08.12.2016 and in light of judgment of Supreme Court in the case of Nagpur Hotel Owners' Association, 247ITR201(SC), requested to drop the proceedings. The Assessing Officer however made an addition of Rs. 2,30,32,139/-, vide its ord....
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....furnished along with the return and on assessee's failure to do the same, the assessing officer was justified in making the addition of the amount in question. 7. We have heard learned counsel for the appellant and perused the material available on record. 8. It is not in dispute that after filing of the return and before the assessment was completed, the assessee had furnished requisite details including resolution and the notice to the AO as required under Section 11(2) of the Act in the prescribed Form 10. The entitlement of the assessee for seeking setting apart of the amount of Rs. 2,30,32,139/- is not in dispute. The assessing officer has made the addition of the amount only on account of the fact that the respondent assessee had s....
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....ssing 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 Act and the Rules even then, in our opinion, it is reasonable to presume that the intimation required under Section 11 has to be furnished before the assessing authority completes the concerned assessment because such requirement is mandatory and without the particulars of this income the assessing authority cannot entertain the claim of the assessee under Section 11 of the Act, therefore, compliance of the requirement of the Act will have to be any time before the assessment proceedings." 10. That apart, as long as the entitlement of the assessee regarding setting apart....