TaxTMI 
TaxTMI 
2021 (7) TMI 952
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....sessment passed u/s.154 of the Income Tax Act, 1961 (hereinafter referred to as Act) dated 17/11/2017 by the ld. Income Tax Officer (E)2(3), Mumbai (hereinafter referred to as ld. AO). 2. The only issue to be decided in this appeal is as to whether the ld. CIT(A) was justified in upholding the disallowance made by the ld. AO by denying accumulation u/s.11(2) of the Act in the facts and circumstances of the instant case. 3. We have heard rival submissions and perused the materials available on record. We find that assessee is a public charitable trust running a school and had filed its return of income for the A.Y.2014-15 on 29/09/2014 declaring total income of Rs.Nil. We find that assessee trust is duly registered u/s.12A of the Act. ....
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.....10 in electronic form. If CPC had intimated the assessee trust, then it would have informed CPC regarding the filing of Form No.10 in physical mode before the ld. AO on 26/06/2014 and could have furnished scanned copy of the same. Accordingly, it was pleaded that the CPC while processing the return of income u/s.143(1) of the Act had erred in not granting the benefit of accumulation of income u/s.11(2) of the Act for want of electronic filing of Form No.10 and also by ignoring the audit report in Form No.10B wherein the figure of accumulation has been duly mentioned by the Auditor. Thereafter, the assessee preferred a rectification petition u/s.154 of the Act before the CPC which was rejected by the CPC on the ground that assessee did not ....
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....nder consideration, the ld. AO (CPC) ought not to have disallowed the accumulation of Rs. 35,90,518/- while processing the return vide intimation u/s.143(1) of the Act. Pursuant to section 154 application preferred by the assessee before the ld. AO (CPC), the regular accumulation u/s.11(1)(a) of the Act was duly allowed but the accumulation u/s. 11(2) was denied for want of Form No.10 in electronic mode. We find that both the lower authorities have grossly erred in not appreciating the facts of the case and by denying the benefit of accumulation on a mere technical inability on the part of the assessee. Moreover, we find the very same issue had been the subject matter of adjudication by this Tribunal in the case of Parle Hindu Devalaya Mand....
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....essment year 2015-16, there was no requirement of filing Form no.10 electronically. It was submitted by the assessee, since Form no.10, was furnished manually before the Assessing Officer on the due date of return of income i.e., 28th September 2015, the claim of exemption under section 11(2) of the Act has to be allowed. The application filed under section 154 of the Act was rejected on the ground that there is no mistake apparent on the face of record requiring rectification. Against the order passed under section 154 of the Act, the assessee preferred appeal before the first appellate authority. 4. Before the learned Commissioner (Appeals) also, it was submitted by the assessee that filing of Form no.10, electronically was made ....
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....fficer on 28thSeptmber 2015, the very same date the return of income for the assessment year 2015-16, was filed by the assessee. On a perusal of rule-17, as it existed prior to its amendment/substitution by Income Tax (1st Amendment) Rule, 2016, w.e.f. 1st April 2016, the provision only required filing of Form no.10, before the expiry of the time allowed under sub-section (1) of section 139 of the Act for furnishing return of income. Only w.e.f. 1 st April 2016, amended rule 17 provided for filing Form no.10 electronically before the due date of return of income under section 139(1) of the Act. That being the case, assessee's claim of exemption under section 11(2) of the Act cannot be rejected only for the reason that Form no.1....