ITAT Mumbai: Section 11(5) Shortfall from Earlier Years Cannot Be Taxed; Only Current Year Violation Taxable

Sant Sitarambua Walawalkar Charitable Trust Vs ITO (ITAT Mumbai) ITAT Mumbai: Section 11(5) Shortfall from Earlier Years Cannot Be Taxed; Only Current Year Violation Taxable The ITAT Mumbai held that shortfall in investments under Section 11(5) relating to earlier years cannot be taxed in the current assessment year, even after the amendment by Finance Act, 2021. The Tribunal observed that the amendment mandating strict compliance of investment in specified modes is prospective (applicable from 01.04.2022) and cannot be applied retrospectively to disturb past accumulations or deficiencies. Key...