2022 (4) TMI 974

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....2016 declaring total income of Rs. 37,25,830/- under Section 11(1B) of the Act. Petitioner's audited accounts also was uploaded alongwith the audit report in Form 10B. For the year under consideration, petitioner had claimed an accumulation of Rs. 70,00,000/- for using for charitable and religious purposes in India over a period of five years under Section 11(2) of the Act. The same was duly claimed by filing Form No.10 in this regard. According to petitioner, in the audit report and in the return of income, inadvertently it was mentioned that such accumulation is against Section 11(1) of the Act. This was duly explained during the course of assessment proceedings which explanation was accepted. 2. Thereafter, an assessment order came to....

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....ct calling upon petitioner to furnish details of accumulation made under Section 11(2), if any, in last 10 years and the details of utilization as per the format provided. Petitioner was also called upon to furnish copies of application in Form 10 and Resolution of Trustees in this regard. Petitioner, by its letter dated 7th August 2018, provided details of accumulation made under Section 11(2) in the last 10 years. Thereafter, petitioner received another notice dated 30th August 2018 under Section 142(1) of the Act once again calling upon petitioner to furnish copy of Form 10 alongwith acknowledgment and Resolution of Trustees with regard to accumulation under Section 11(2) of the Act. By a letter dated 5th September 2018, petitioner provi....

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.... the Act of Rs. 70,00,000/- was factored in while computing the income. Therefore, it is quite clear that this issue was under active consideration during the assessment proceedings. Infact in the affidavit in reply at paragraph 6.13 respondents admit the fact that the amount of Rs. 70,00,000/- was inadvertently shown as deemed application of income and after a show cause notice was issued and an explanation was received, the Income Tax Officer accepted the claim of accumulation of Rs. 70,00,000/- under Section 11(2) of the Act and finalised the assessment under Section 143(3) of the Act on 5th December 2018. 5. As regards the allegation in the reasons recorded that it is not ascertainable whether the amount of Rs. 70,00,000/- is accumul....