GEAR Foundation Vs ACIT (ITAT Bangalore)
ITAT Bangalore held that non-granting of accumulation of income under section 11(2) due to delay in filing Form 10 not justified since delay was condoned by appropriate authority. Accordingly, appeal allowed in favour of assessee.
Facts- In the present appeal, the assessee has two grievances that (i) it has not been granted accumulation of income u/s. 11(2) of the Act amounting to Rs. 335,28,160 and (ii) further depreciation was disallowed of Rs.132,43,091 for the reason that assessee has claimed double deduction.
Conclusion- Held that order of ld. CIT(Exemptions) condones the delay in filing Form 10 for AY 2017-18 for accumulation of income of Rs.335,28,160. In view of this, as the delay has been condoned by the appropriate authority, ground no.1 of the appeal deserves to be allowed in favour of assessee. The ld. AO is directed to grant accumulation of total income of Rs. 335,28,160.
Held that it was further stated that there is no evidence with the AO at all, on which assessee has claimed depreciation, cost of acquisition of those assets have already been allowed to the assessee. The ld. DR also agreed that if the assessee can satisfy the ld. AO with various computation of income of earlier years that assessee has not claimed the actual cost of the assets as application of income on which assessee has claimed depreciation for this year, disallowance can be deleted. In view of the above facts, we restore ground no.2 of the appeal to the ld. AO, with a direction to the assessee to substantiate the claim that if depreciation is allowed to the assessee, it will not amount to double deduction.
