THE SOMAIYA TRUST,MUMBAI vs. INCOME TAX OFFICER, EXEMPTION WARD 2(4), MUMBAI

ITA 4057/MUM/2026Status: DisposedITAT Mumbai16 September 2026AY 2023-2411 pages
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What were the facts?

The assessee, a charitable trust, reinvested capital gains from the sale of land into fixed deposits. The Assessing Officer and CIT(A) denied exemption under Section 11(1A) for this reinvestment, arguing that fixed deposits are not new capital assets and Form 10 was not filed. The trust also claimed a write-off of unrecoverable TDS as application of income.

What did the Tribunal hold?

The Tribunal held that investment in fixed deposits for a period of 6 months or more qualifies as acquiring 'another capital asset' under Section 11(1A) as per CBDT Instruction No. 883. The Tribunal also allowed the claim for write-off of unrecoverable TDS as application of income.

What were the issues?

Whether investment in fixed deposits constitutes acquisition of 'another capital asset' for exemption under Section 11(1A), and whether write-off of unrecoverable TDS is an application of income.

Which sections of the Income-tax Act were involved?

Section 11(1A),Section 11(1)(a)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCH “G”, MUMBAI

Before: SHRI NARENDER KUMAR CHOUDHRY & SHRI RAKESH KUMAR LODHA

For Appellant: Shri Gautam Nayak a/w, Shri Mayank Thosar
For Respondent: Shri Basavaraj Hiremath
Hearing: 10.08.2026Pronounced: 16.09.2026

PER : Shri Rakesh Kumar Lodha, Accountant Member:

This appeal has been filed by the assessee against an order under section 250 of the Income Tax Act, 1961 (in short „the Act‟), 25th February 2026 for the assessment year 2023–2024, arising out of the assessment order under section 143(3) dated 18th March 2025. 2. The Assessee has raised following grounds of appeal before the tribunal:

As regards denial of exemption under section 11(1A) of Rs. 51,18,29,565:

1.

The

The order continues below.

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