ACIT Vs Chettinad Academy of Research And Education (ITAT Chennai)
The Chennai Bench of the Income Tax Appellate Tribunal dismissed the appeal filed by the Revenue and upheld the order of the Commissioner of Income Tax (Appeals), which had allowed the assessee trust’s claim for accumulation under Section 11(2)(a) of the Income-tax Act, 1961. The assessee, a charitable trust registered under Section 12AA, had filed its return for Assessment Year 2019–20 declaring nil income after claiming exemption under Section 11 and had also filed Form No.10 within the due date under Section 139(1), seeking accumulation of ₹11.22 crore.
Following a search under Section 132, assessment proceedings under Section 153A were initiated. During these proceedings, the Assessing Officer proposed to disallow ₹13.74 crore representing income-tax paid, treating it as not applied for charitable purposes. The assessee explained that the amount was inadvertently claimed as application and sought to treat it as accumulation by filing a revised Form No.10 during the assessment proceedings but before completion of assessment. The Assessing Officer rejected the revised Form No.10 on the ground that it was not filed within the time limit under Section 139(1) and consequently disallowed the claim, completing the assessment by determining taxable income.
