TaxTMI 
TaxTMI 
2026 (9) TMI 1070
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....short) for Assessment Year 2023-24. 2. The assessee has raised following grounds of appeal:- "Ground 1: Disallowance of accumulation of 15 per cent application of funds amounting to Rs. 43,89,286/- in terms of third proviso to section 10(23C) of the Income Tax Act, 1961 The Ld. CIT(A), NFAC, has erred in law and on facts in confirming the disallowance of accumulation of 15% of income amounting to Rs. 43,89,286 under the third proviso to section 10(23C) of the Income-tax Act, 1961, without appreciating that such accumulation up to 15% of income is statutorily permitted and is required to be allowed while determining the application of income of the appellant trust. Ground 2: Disallowance of Rs. 16,60,000/- being....
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.... engaged in running educational institutions in furtherance of its charitable objects. For the year under consideration, the assessee filed its return of income on 28.11.2023, claiming exemption u/s 11 of the Act. During the year, the assessee claimed application of income amounting to Rs.2,92,61,905/- towards its charitable objects. It also claimed accumulation of 15% of its income amounting to Rs.43,89,286/- u/s 11(1)(a) of the Act and further accumulation of Rs.16,60,000/- u/s 11(2) of the Act by filing Form No.10 on 03.11.2023. The case of the assessee is that the CBDT, vide Circular No.16/2023 dated 18.09.2023, extended the due date for filing the return of income for the relevant assessment year to 30.11.2023. According to the assesse....
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....ing to him, the benefit was denied solely on account of the alleged belated filing of Form No.10/Form No.10BB. The Ld. AR further submitted that Form No.10 was furnished on 03.11.2023, whereas the extended due date for filing the return of income was 30.11.2023. Thus, Form No.10 was furnished before the extended due date applicable to the assessee. It was accordingly submitted that there was no delay warranting denial of the benefit under section 11(2) of the Act. With regard to Form No.10BB, the Ld. AR submitted that the audit report had been furnished on 01.11.2023 and again on 31.12.2023, whereas the intimation u/s 143(1) was issued only on 18.11.2024. Therefore, the audit report was available on record before processing of the return. T....
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....puted facts are that the assessee filed Form No.10 on 03.11.2023 and the return of income on 28.11.2023, whereas the due date for filing the return for AY 2023-24 had been extended by the CBDT to 30.11.2023 vide Circular No.16/2023 dated 18.09.2023. Thus, Form No.10 was furnished before the extended due date of filing the return. We, therefore, find no justification in the action of the Ld. CIT(A) in treating Form No.10 as belated merely with reference to the original date of 30.10.2023. Accordingly, the assessee cannot be denied the benefit of accumulation of Rs.16,60,000/- u/s 11(2) on this ground. 9.1 As regards the accumulation of 15% amounting to Rs.43,89,286/-, the same is statutorily permissible u/s 11(1)(a) of the Act and is dist....