DEPUTY COMMISSIONER OF INCOME TAX(EXEMPTIONS) CIRCLE-2, CHANDIGARH, CHANDIGARH vs. SHRI SHIV NARAIN SIDHESWAR MANDIR BAGH SANATAN DHARAM SABHA, GURGAON

PER RAJPAL YADAV, VP The Revenue is in appeal before the Tribunal against the order of ld. Commissioner of Income Tax (Appeals) [in short ‘the ld.CIT (A)’] dated 21.02.2025 passed for assessment year 2018-19. 2. In the solitary ground of appeal Revenue has pleaded that assessee has not submitted Form No. 10 as contemplated in A.Y.2018-19 2

Section 11(2) of the Income Tax Act, 1961 therefore, it is not entitled for exemption u/s 11(2) of the Income Tax Act.
3. With the assistance of the ld. Representative, we have gone through the record carefully. It emerges out from the record that assessee has filed its return of income on 27.09.2019 declaring ‘nil’ income. The case of the assessee was selected for scrutiny assessment. A perusal of the record would reveal that assessee has claimed accumulation of income at Rs.3,94,63,021/-. However, declaration in Form-10
was construed as not specific. According to the AO, assessee has not declared the purpose for which this accumulated income would be used in future, therefore, he declined the benefit to the assessee.
4. Dissatisfied with the assessment order, assessee carried the matter in appeal before the CIT (Appeals). It has pointed out that it has revised the Form-10. The ld.CIT (Appeals) has gone through the record carefully and after putting reliance upon judgement of Hon'ble Gujrat High Court in the case of CIT Vs Bochasanawasi Shri Akshar Purshottam Public
Charitable Trust (2019) 102 taxmann.com 122, CIT (Appeals)
A.Y.2018-19
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had deleted the disallowance and held that assessee will be entitled for benefit of Section 11(2) of the Act.
5. The ld. CIT DR took us through paragraph No. 5.1 to 5.4
of the assessment order. She contended that it was mandatory for the assessee to submit Form No.10 well in time and also disclosed the purpose of accumulation. In case assessee fails to disclose the purpose, then it is not entitled for the benefit.
On the other hand, ld. counsel for the assessee relied upon the order of the CIT (Appeals).
6. The ld.CIT (Appeals) has held that when accumulation was made for its future utilization, then two hospital projects were coming up and modernization of existing institution was undergoing. The form was submitted well in time. The only ambiguity at the most could be, specific purpose might have not been mentioned in Form, but it is to be construed that accumulated funds, in any case, have to be applied for charitable activities i.e. qua objects of the assessee. The only difference could be, whether it will go to corpus funds or other revenue requirements of the Institution in its day-today running but in any case, the lapse was not such for which A.Y.2018-19
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exemption u/s 11(2) could be denied. We are of the view that ld.CIT (Appeals) has decided the above issue in right perspective and we do not find any error in the order of the CIT
(Appeals).
Accordingly, appeal of the Revenue is dismissed.
7. In the result, appeal of the Revenue is dismissed.
Order pronounced on 13.10.2025. (MANOJ KUMAR AGGARWAL)
VICE PRESIDENT

“Poonam”

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