2025 (7) TMI 1792

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ng to the assessee's sole substantive ground challenging both the learned lower authorities' action disallowing its section 11 exemption claim, the tribunal's attention is invited at the outset to the learned lower authorities' discussion reading as under: "5.1 The main contention of the appellant is that the addition of Rs. 18,44,782/- made by the CPC is not justified because the amount accumulated in AY 2017-18 was applied in AY 2023-24, which according to the appellant is within the permissible time limit as per section 11(3)(c) of the Act before its amendment by Finance Act, 2022. 5.2 Section 11(2) of the Act allows a charitable or religious trust to accumulate income for a maximum period of 5 years for application towards specifie....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 2023-24, and hence the amended provision is correctly applicable. The law as it stands on the first day of the assessment year is applicable for determining the tax liability for that assessment year. This is a well-established principle, upheld by the Supreme Court in numerous judgments, including CIT v. Vatika Township Pvt. Ltd. [2014] 367 ITR 466 (SC). 5.6 The appellant's reliance on the decision of Hon'ble ITAT Bangalore in the case of M/s Phulchand Gulabchand Charitable Trust vs. Income Tax Officer Ward-2 is not relevant as the facts and applicable law in that case were different. Similarly, the judgments of the Supreme Court in the cases of Commissioner of Income Tax vs. Vinay Cement Ltd. and Sedco Forex International Dril....