Finance Act 2022 Amendment to Sec.11(3) Prospective – ITAT Ahmedabad Allows 6th Year Utilization

Sarangpur Talia’s Pole Punch Trust Vs ITO (Exemption) (ITAT Ahmedabad) Background Assessee: Sarangpur Talia’s Pole Punch Trust (public trust). Issue: Exemption u/s 11 denied in respect of ₹2,00,000 accumulated income u/s 11(2). CPC disallowed, holding that accumulation from FY 2016-17 had to be used within 5 years (i.e., by FY 2021-22). Since spent only in 6th year (FY 2022-23), CPC taxed it u/s 115BBI @ 30%. Demand raised: ₹78,660. CIT(A) confirmed disallowance. Assessee’s Arguments Finance Act 2022 amended s.11(3)(c), removing the extra 1-year window, effective 01.04.2022. But f...