2025 (9) TMI 299

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... confirming the adjustment made by CPC u/s. 143(1)(a) of the act by not allowing the application of income of Rs. 12,40,644/- incurred in the 6th year from the year of accumulation in A.Y. 2017-18. 3. At the outset, Ld. Counsel for the assessee referring to the decision of this Tribunal in the case of Yashwantrao Chavan Maharashtra Open University Vs. CIT in ITA No.505/PUN/2025 order dated 23.06.2025 submitted that prior to the amendment brought in by the Finance Act, 2022 omitting the words "or in the year immediately following the expiry thereto" the position of law was that the assessee was required to utilize the accumulated funds before the end of 6th year and therefore the disallowance made by CPC is uncalled for because the amount....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... the assessee in the instant case has utilized the accumulated surplus funds in the year immediately following the prescribed period of 5 years i.e. before 31.03.2023 and the amendment to the provisions of section 11(3) are held to be prospective in nature, therefore, the Ld. Addl / JCIT(A) in our opinion is not justified in upholding the intimation of the CPC making adjustment of Rs. 90,70,20,511/- u/s 11(3) as deemed income of the assessee which was accumulated in the financial year 2016-17 and when the provisions at the relevant time prescribed the utilization of the amount within a period of 5 years or in the year immediately following the prescribed period of 5 years. Even otherwise also we find merit in the argument of the Ld. Counsel....