Case Law Details
ICAI Vs ACIT (ITAT Delhi)
The grievance of the assessee in this appeal relates to the confirmation of disallowance of Rs. 10,21,26,000/- made by the AO under Section 11(2) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) on account of amount accumulated and the disallowance of Rs. 98,57,10,000/-on account of amount accumulated set apart for application to charitable or other purposes to the extent the said income did not exceed 15% of the income under Section 11(1)(a) of the Act.
Facts of the case, in brief, are that the assessee is a trust and sole regulatory of the profession of Chartered Accountancy set up under an Act of Parliament in 1949. The assessee has e-filed the return of income on 29.9.2014 declaring nil income after claiming exemption under section 11 of the Act. The assessee is registered under Section 12A of the Act and also notified under section 10 (23 C)(114) of the Act. The return of income was processed under section 143(1) of the Act on 19.3.2016 by the CPC Bangalore, however, the amount accumulated or set apart for application to charitable purposes to the extent it does not exceed 15 per cent of the income, claimed at Rs. 98,57,1000/- under section 11 (1)(a) (11)(b) of the Act and accumulation of Rs. 10,21,26,000/- under section 11(2) of the Act were not allowed and the total claim was restricted to Rs. 548,35,67,000/- instead of Rs. 657,14,03,000/-. Accordingly, the income was computed at Rs. 108,78,36,000/-.
Being aggrieved, the assessee carried the matter to the learned CIT(A) and submitted that the assessee’s professional while filing the ITR failed to punch the amount of Rs. 98,57,10,000/- under point no. 9 (v) of the ITR 7 (represented by equivalent amount on account of the amount of income of the previous year accumulated / set apart for application to charitable / other purposes to the extent the said income did not exceed 15% of the income for the assessee for the captioned assessment year) but the relevant forms, reports and resolutions etc., such being Form No. 10, 10 B and 10 BB were already furnished electronically wherein the said amount of Rs. 98,57,10,000/-was duly reflected and claimed as such. It was further submitted that even in respect of the amount of Rs. 10,21,26,000/- which was sought to be accumulated under Section 11(2) of the Act and whose details were also filed in the ITR was considered as an income and no benefit with respect to the same was provided in the intimation under section 143(1) of the Act. It was also stated that the said accumulation was appearing in Form No. 10 B and also in Form No. 10 BB both of which were electronically filed on 26.9.2014.
We have considered the submissions of both the parties and perused the material available on the record. In the present case, it appears that due to oversight the professionals of the assessee while filing the ITR could not punch the amount under point no. 1(v) of the ITR. However, all the details pertaining to the said claim of Rs. 98,57,10,000/- u/s 11(1)(a) and Rs. 10,21,26,000/- u/s 11(2) were duly mentioned in Form No. 10 B and Form No. 10 BB which is apparent from page no. 129 and 132 of the assessee’s paper book.
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