TaxTMI 
TaxTMI 
2026 (6) TMI 678
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....e Delhi (the learned CIT - A) dated 16 December 2025 wherein the appeal filed by the assessee against the assessment order passed under section 143 (3) r.w.s. 143 (3)(3A) & 143(3B) of the Income Tax Act, 1961 [the Act] was partly allowed. 2. The assessee is aggrieved with the same raising several grounds of appeal, however the main concern of the appeal is that assessee has not been allowed the accumulation of Rs. 2 crores wherein form No. 10 was filed by the assessee and further the addition of Rs. 8,850,592 claimed as application of income towards capital expenditure was also not granted as it was stated that it is opening work-in-progress. Further the claim of the assessee is that sum of Rs. 8,850,592 would be available as a carryover....
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....d that assessee has not received any such sum and therefore there is no possibility of filing such form. Therefore the ld. AO noted that assessee has received a donation of Rs. 2 crores which was not shown in the books of account and therefore the amount of Rs. 2 crores was treated as deemed income of the assessee and brought to tax. The AO further noted that capital expenditure incurred by the assessee to meet the application of 85% of the income, assessee has taken an amount of Rs. 8,850,592 being opening capital work in progress as capital expenditure incurred during the year. However the amount is only opening capital work in progress and same has not been actually incurred during the year, the amount of the above sum of Rs. 8,050,592 i....
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....correctly the amount of income earned as well as applied. He further referred to page No. 44 of the paper book which is form No. 10 under Rule 17 (2) for accumulation of income under section 11(2) of the Act. Assessee submitted that this form No. 10 was filed wherein the funds were accumulated for use of addition to the building for educational purposes. The period of accumulation was 31st of March 2023 a sum of Rs. 2 crores were accumulated. It is stated that the sum has not been received by the assessee but inadvertently such form No. 10 B was filed. It was stated that merely because form No. 10 was filed by the assessee, it could not have been the income of the assessee. Therefore the addition of Rs. 2 crores made by the ld. AO deserves ....
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.... received as income than the application of expenditure. Therefore his claim was that when there is an income surplus available, assessee is entitled to deduction of the excess utilisation of the funds over its income for earlier years. 8. The ld. DR vehemently supported the order of the learned lower authorities and submitted that how the assessee could have filed form No. 10 without receiving the sum and accumulating the same for the purpose of the business of the trust. He submitted that the assessee has earned the receipt of Rs. 2 crores but same are not disclosed in the books of account and therefore the addition made by the learned lower authorities is correct. With respect to the capital work in progress of 88,50,592/- it was his ....
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..... Accordingly the ld. AO is directed to delete the addition of Rs. 2 crores. Ground No. 3 of the appeal of the assessee is allowed. 10. Ground No. 4 is with respect to the application of income towards capital expenditure of Rs. 8,850,592 which was shown to be an opening capital work in progress in the balance sheet of the assessee. We find that the assessee has shown to us the fixed assets schedule wherein the addition of Rs. 1.91 crores is made to the fixed assets of the assessee which is claimed by the assessee as an application of income. The work in progress is shown by the assessee of Rs. 8,850,592 has not been claimed by the assessee as an application of income. The assessee has claimed application of income of the assets which ha....