TaxTMI 
TaxTMI 
2025 (11) TMI 930
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....2025 passed by Respondent No.1 for A.Y. 2015-16 under Section 119(2)(b) of the Income Tax Act, 1961 (for short "the Act") rejecting the Petitioner's application dated 16.11.2023. Respondent No.1, by the impugned order, has held that even though the mandatory electronic filing of Form No.9A started from A.Y. 2016-17 onwards, the Petitioner was still required to file Form No.9A manually (for A.Y. 2015-16) regarding the option to be exercised in clause (2) of the Explanation to Section 11(1). By the impugned order, Respondent No.1 also refused to condone the delay in filing Form No.9A. Consequently, the accumulation claimed by the Petitioner under clause (2) of the explanation to Section 11(1) of the Act has been denied to the Petitioner. 3....
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....urpose. It is the further case of the Petitioner that there was no prescribed format for filing the said written intimation regarding exercising of the option referred to above. It is also the case of the Petitioner that as the Section 11(1) of the Act existed for F.Y. 2014-15 [i.e. A.Y. 2015-16], it had filed the said written intimation on 12.09.2015 at 04:50:56 p.m., by filing its audit report in Form No. 10B. Under the said Form No. 10B, the Petitioner had exercised its option under clause (2) of the Explanation to Section 11(1) and informed the I.T. Department that the amount deemed to have been applied for charitable activities during F.Y. 2014-15 is Rs. 2,21,56,903/-. As mandated by law, the said written intimation was filed within ti....
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.... was introduced in the statute for the first time w.e.f. 01.04.2016. The said prescribed format is Form No. 9A under the IT Rules. It is the case of the Petitioner that the return of income in the present case pertains to an earlier period, i.e. F.Y. 2014-15 during which the prescribed format, i.e. Form 9A did not exist in the statute. In any case, it is also the case of the Petitioner that on 12.09.2015 it had exercised its option under Clause (2) of the Explanation to Section 11(1) by filing the necessary written intimation to the I.T. Department. However, by way of abundant caution, the Petitioner had exercised the option referred to in clause (2) of the Explanation to sub-section (1) of Section 11 of the Act by filing Form No.9A on 30.0....
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....,903/- under Clause (2) of the Explanation to Section 11(1). Hence, we are of the view that there is sufficient material on record to demonstrate that the Petitioner had clearly expressed its intention to accumulate its income of Rs. 2,21,56,903/- under Section 11(1) of the Act. 9. As held by this Court in a matter pertaining to Form No. 10, it was held in para 23 of the judgment in the matter of KSB Care Charitable Trust vs. CIT (Exemption), Mumbai & Ors. [Writ Petition (L) No. 23591 of 2025 dated 22nd September, 2025] that the benefit of accumulation under Clause (2) of the Explanation to Section 11(1) of the Act ought not to be denied to the Petitioner when the entire accumulated amount has actually been applied for charitable purpose....
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....Form No. 10B as well as in their return of income which were filed within time. 12. We find that the impugned order has incorrectly held that Form No.9A was required to be filed manually for A.Y. 2015-16. We find that if the reliefs are not granted to the Petitioner, there will be genuine hardship to the Petitioner, inasmuch as the Petitioner would be saddled with a huge demand as raised in the earlier round of assessment proceedings even though it has substantially complied with the requirements of clause (2) of the Explanation to Section 11(1) of the Act. 13. In view of the foregoing discussion, we quash and set aside the impugned order dated 12.03.2025 passed by Respondent No.1 as there was no requirement to file Form No.9A for A.Y....