THE BOMBAY SOCIETY OF THE FRANCISCAN CLARIST SISTERS OF THE MOST BLESSED SACRAMENT,MUMBAI vs. ITO EXEM WARD 2(4), MUMBAI

ITA 2501/MUM/2025Status: DisposedITAT Mumbai22 September 2025AY 2023-24Bench: SHRI PAWAN SINGH (Judicial Member), SMT. RENU JAUHRI (Accountant Member)34 pages
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What did the Tribunal hold?

The Tribunal held that the amendment to Section 11(3) is prospective and the assessee was entitled to utilize the accumulated funds within the grace period as per the law existing at the time of accumulation.

What were the facts?

The assessee, a charitable trust, had accumulated funds under Section 11(2) and utilized a portion of it in the subsequent financial year. The CPC disallowed this utilization, citing an amendment to Section 11(3) by the Finance Act, 2022, which reduced the utilization period.

What were the issues?

Whether the amendment to Section 11(3) by the Finance Act, 2022, disallowing utilization of accumulated funds after 5 years, applies prospectively or retrospectively to accumulations made prior to the amendment.

Which sections of the Income-tax Act were involved?

Section 11(2),Section 11(3),Section 143(1),Section 115BBI

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Cases cited in this judgment(3)Show list

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Before: SHRI PAWAN SINGH & SMT. RENU JAUHRI

Hearing: 03.09.2025Pronounced: 22.09.2025

PER RENU JAUHRI [A.M.] :- This appeal is filed by the assessee against the order of the ADDL/JCIT (A)-2 Delhi, [CIT(A)] dated 28.02.2025 passed u/s. 250 of the Income-tax Act, 1961 [hereinafter referred to as “Act”] for Assessment Year 2023-2024. 2. The assessee has raised the following grounds in thi

The order continues below.

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