2025 (2) TMI 1889

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....e on 12.10.2018 declaring total income of Rs. nil after claiming exemption under section 11 of the Income-tax Act, 1961 (for short 'the Act') to the extent of Rs. 2,56,03,360/-. The case was selected for scrutiny through CASS for the reason continuous accumulation of profit in Trust, tax credit claimed in ITR is less than tax credit available in 26AS, large amount of donation given to other organization in schedule ER and claim of large value refund. Accordingly, notices u/s 143(2) and 142(1) of the Act were issued and served on the assessee. In response, ld. AR of the assessee submitted the relevant information as called for. 3. During assessment proceedings, the Assessing Officer observed that assessee has accumulated Rs. 2,56,03,360/-....

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....e mentioned in the Act or Rule for the passing of the resolution and it emphasised only on the date of filing of notice in Form 10. After considering submissions of the assessee, Assessing Officer disallowed the same. 4. Aggrieved with the above order, assessee preferred an appeal before the NFAC, Delhi and made submissions. After considering the grounds of appeal and submissions of the assessee, ld. CIT(A) dismissed the grounds raised by the assessee with the following observations :- Paras 6.3.1. to 6.3.4 5. Aggrieved with the above order, assessee is in appeal before us raising following grounds of appeal :- "1. The Ld. CIT(A) erred both on facts and in law in upholding the order passed by the AO denying the benefit of ....

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....or to the due date of filing the return of income i.e. 30.09.2018 in the present case. The said Report dated 24.09.2018 was filed in time. 3. The statement for accumulation in Form No.10 was required to be filed before the expiry of the time allowed u/s 139(1), for furnishing the return of income. (PI see Section 11(2)(C) of the Act read with Rule 17(2)). The said Form was filed on 25.10.2018 along with the Resolution dated 24.10.2018, which is due compliance with the Statutory Provisions. It is apparent that (1) & (3) above have a common date for compliance viz 31.10.2018 but there is no requirement to file the return and statement in Form No.10 together. At this stage a reference is made to the Provisio....

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....er authorities. 8. Considered the rival submissions and material placed on record. We observed that assessee has filed its return of income on 12.10.2018 and filed the auditor report in Form 10B. The abovesaid Form 10B was dated 24.09.2018. It is a fact on record that assessee has accumulated Rs. 2,56,03,360/- for the purpose of establishing an English Medium Higher Secondary School. When the assessee was asked to submit Form 10 as per the provisions of Rule 17(2) of the Rules, the assessee has to furnish Form 10 along with return of income. The assessee has submitted the relevant Board Resolution dated 24.10.2018 and filed Form 10 on 25.10.2018. After considering Form 10, the Assessing Officer was of the view that assessee has accumulat....