Navalmal Firodia Memorial Hospital Trust Vs ITO (ITAT Pune)
Section 11 Accumulation Utilised in 6th Year Valid – Amendment Prospective – CPC Adjustment U/s 11(3) 115BBI Deleted by ITAT Pune
The ITAT Pune allowed the appeal of a charitable hospital trust & deleted the CPC adjustment of ₹6 lakh made u/s 11(3) r.w.s. 115BBI, holding that accumulation made in AY 2017-18 could be validly utilised within five years plus one additional year as per the law prevailing at the time of accumulation. The Tribunal observed that the trust had already utilised the accumulated amount before 31-03-2023, i.e., within the permissible 5+1 year period, and therefore no deemed income could arise in AY 2023-24.
Relying on coordinate bench ruling in Yeshwantrao Chavan Maharashtra Open University & the principle that amendments imposing burden are prospective, the Tribunal held that Finance Act 2022 changes restricting the period cannot be applied retrospectively to earlier accumulations. It also noted that CPC cannot make adjustments on debatable issues.
Accordingly, the order of CIT(A) was set aside & AO/CPC was directed to delete the addition, reaffirming that accumulations governed by earlier law remain eligible for utilisation in the 6th year.
FULL TEXT OF THE ORDER OF ITAT PUNE
