2026 (1) TMI 918

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....nafter referred to as 'ld. NFAC', in short] in ITBA/NFAC/S/250/2024-25/1064670325(1) dated 06.05.2024 against the order of assessment passed u/s 147 r.w.s. 143(3) of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') dated 18.12.2017 by the Assessing Officer, ITO(Exemption), Ward-1(2), New Delhi (hereinafter referred to as 'ld. AO'). 2. At the outset, we find that there is a delay in filing of appeal by the revenue by 31 days. Considering the reason adduced in the condonation petition, in the interest of substantial justice, we are inclined to condone the delay and admit the appeal of the revenue for adjudication. 3. The only effective issue in the grounds raised by the revenue is as to whether the ld CIT(A) was justified....

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....he ld AO for AY 2015-16 vide issuance of notice u/s 148 of the Act on 27.02.2017. The case of the revenue is that the accumulated fund for AY 2009-10 which remained unutilized for the purpose of objects of the society would have to be taxed in the year immediately succeeding the 5th year from the year of accumulation. According to the revenue, as per the Act, the accumulated fund for AY 2009-10 should be utilized before AY 2014-15, failing which, the unutilized portion would become taxable as income of the assessee in the immediately succeeding year after the expiry of 5 years i.e. in AY 2015-16, being the year under consideration. Accordingly, the ld AO framed the assessment u/s 147 r.w.s. 143(3) of the Act on 18.12.2017 bringing to tax a ....

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....of CIT(E) Vs. Subros Educational Society which stood confirmed by the Hon'ble Supreme Court. 7. The ld CIT(A) agreed to the alternative plea of the assessee that the assessee would be entitled to set off the earlier years' excess of expenditure over income with the income determined for the year under consideration by holding that the ratio decidendi of Hon'ble Delhi High Court in the case of Subros (supra) shall apply to the facts of the instant case. The ld CIT(A) also noted that the said decision of the Hon'ble Delhi High Court has been subsequently approved by the Hon'ble Supreme Court. Further, the ld CIT(A) duly appreciated the fact of the assessee that it was not able to utilize the funds set aside for the building con....