SRI SELVALAKSHMI SRINIVASA EDUCATIONAL AND CHARITABLE TRUST,SALEM vs. ACIT(E), SALEM

The assessee filed this appeal against the order of the Commissioner of Income Tax (Appeals), Salem in 18 dated 19.02.2019 for the assessment year 2015-16.

The Ld.AR submitted that the assessee’s trust is registered U/s.12A and filed its return of income for the assessment year 2015- 16 on 31.10.2015 claiming accumulation U/s.11(2). The CPC did not consider the claim for the reason that the trust had not filed the Form 10 for accumulation or for setting apart of income as per Section 11(2) r.w.r. 17 of the Income Tax Rules. As per the Rule 17 of the Income Tax Rules, the assessee should have filed the Form No.10 before the due date of filing the return i.e., on 30.09.2015. The assessee received intimation from Bengaluru U/s.143(1) dated 22.10.2016 with a tax liability. On its disagreement with CPC, the CPC transferred the case to ITO, Exemption Ward, Salem, before him the proceedings U/s.154 was conducted. The Assessing Officer requested the assessee to furnish a copy of Form No.10 along with acknowledgement for having filed it before the due date. Since, the assessee could not file, he denied the benefit U/s.154. Aggrieved the assessee filed an appeal before the CIT(A). The assessee filed Form No.10 before the Assessing Officer on 22.10.2017 and filed a copy of Form No.10 before the Ld.CIT(A) which was not acknowledged by the Ld.CIT(A). The assessee also relied on the Hon’ble Supreme Court decision in the case of CIT vs. Nagpur Hotel Owners’ Association, 247 ITR 201 (SC), in support of its claim, wherein the Hon’ble Supreme Court held that submission of Form No.10 before completion of assessment is held as sufficient compliance for entertaining accumulation by a trust. However, the Ld.CIT(A) dismissed the appeal stating that the assessee has not produced the Form No.10 before the Assessing Officer till the date of rectification proceedings. Therefore, the assessee pleaded that suitable direction may be given to the Assessing Officer for considering Form No.10 and decide the matter.

We heard the rival submissions. Since, the assessee has filed the Form No.10 before the Assessing Officer and a copy before the Ld.CIT(A) and relied on the decision of the Hon’ble Supreme Court in the case of CIT vs. Nagpur Hotel Owners Association, supra, following the decision of the Hon’ble Supreme court in the case Goetze India Ltd v. CIT reported in 284 ITR 323, we direct the Assessing Officer to consider the Form No.10A and its enclosure, afresh, as to whether they are in accordance with the law and if they are in accordance with the law to allow the relief. The assessee shall furnish relevant material before the Assessing Officer and comply with the requirements of the Assessing Officer in accordance with law. The Assessing Officer after affording adequate opportunity to the assessee, decide the issue. Therefore, the assessee’s appeal is treated as allowed for statistical purposes.

In the result, the assessee’s appeal is treated as allowed for statistical purposes.