Artificial Limbs Manufacturing Corporation of India Vs ACIT (ITAT Delhi)
ITAT Delhi held that accumulation under section 11(1)(a) of the Income Tax Act is to be allowed at 15% of gross receipts. Accordingly, appeal of the assessee allowed.
Facts- Assessee has preferred the present appeal mainly contesting that on a due consideration of the facts and circumstances of the case, NFAC/ld. CIT(A) should have quashed the reassessment order dated 19.12.2017, on the grounds that Accumulation of 15% was to be computed on the basis of gross receipts and not net income.
Conclusion- ITAT Bangalore Bench in B S & G Foundation has held that the accumulation u/s. 11(1)(a) of the Act is to be allowed at 15% of gross receipts, as claimed by the assessee. Further, co-ordinate bench of the Tribunal in the case of Mary Immaculate Society has also held that the assessee is to be allowed accumulation of income for application for charitable purposes u/s. 11 (1)(a) of the Act at 15% of gross receipts. Accordingly, following the above decisions, appeal of the assessee is allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
The assessee has filed two appeals against the order of ld. Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi (hereinafter referred to ‘Ld. CIT (A)’) dated 17.07.2023 for AYs 2015-16 and 2016-17.
