Case Law Details
Mulki Sundar Ram Shetty Nagar Ayyappa Swamy Temple Trust Vs ITO (Exemptions) (ITAT Bangalore)
ITAT Bangalore held that delay in filing Form 10B in the relevant period was condoned as per Circular No.10 (F.No.197/55/2018) dated 22.5.2019, accordingly, deduction towards application and accumulation of funds is duly allowable.
Facts- The CPC while processing the return denied the claim towards application of funds amounting to Rs.97,48,271/- towards the objects of the trust and denied the deduction towards accumulation u/s 11(1) of the Act also. The reason for the denial was stated to be the delay in furnishing the Form 10B and that the same ought to have been filed on or before filing the return of income.
Aggrieved, the assessee preferred an appeal before the CIT(A). The assessee submitted that the Form 10B thought not filed along with the return of income, was filed well before the due date for filing the return of income i.e. 31.10.2017 for the relevant AY. The assessee submitted that the CBDT has issued a Circular No.10 (F.No.197/55/2018) dated 22.5.2019, condoning the delay in filing the audit report provided the same is filed before the due date for filing the return of income u/s 139(1) of the Act. Accordingly, the assessee submitted before the CIT(A) that the assessee should be allowed deduction towards application and accumulation of funds as claimed.
CIT(A) dismissed the appeal of the assessee. Being aggrieved, the present appeal is filed.
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