DCIT, C-2 (EXEMPTION), CHANDIGARH vs. M/S CHINTPURNI TEMPLE TRUST, CHINTPURNI

per the provisions of section 11(3) of the Act, on

account of non utilization of the accumulated income

of A.Y. 2007-08, amounting to Rs.2,36,80,384/- within

next five years.

income of the assessee for A.Y. 2007-08 was

Rs.2,36,80,384/-and the amount accumulated by the

assessee for utilization within five years by filing Form

No.10, amounted to Rs.2.50 crores. That out of the

unutilized income, the assessee had deposited

Rs.2,17,47,811/- in bank a/c’s is also not disputed.

That the assessee was required to utilize the amount

so accumulated within five years failing which the

same would be deemed to be the income of the

assessee of the previous year following the expiry of

five years, s per section 11(3), is also an accepted

position of law. That in the impugned case,

accordingly the failure to utilize the said amount by

A.Y 2012-13 ,would result in addition of the same

being made to the income of the assessee for the

impugned year i.e. A.Y. 2013-14 is also not disputed.

has given a categorical finding of fact that the said

accumulated income to the extent of Rs.2,17,47,811/-

was utilized in the succeeding year i.e. A.Y. 2008-09.

The Ld.CIT(Appeals) has found that the income of A.Y.

2008-09 was Rs.11.04,15,469/-,of which the assessee

was required to utilize 85% amounting to

Rs.9,83,53,148/-. Further, it was found that the

assessee had utilized Rs.10,45,80,452/-, and had

accumulated Rs.4 crore in the A.Y. 2008-09. The

aforesaid facts have not been controverted by the

Revenue. Considering that the utilization of A.Y 2008-

09 included the amount accumulated in the preceding

year i.e. A.Y. 2007-08 amounting to Rs.2,17,47,811/-

and excluding the same from the utilization for A.Y.

2008-09, the assessee has shown balance utilization of

income in A.Y.2008-09 of Rs.8,28,32,641

(10,45,80,452- 2,17,47,811) which falls short of the

stipulated 85% utilization of the income for the year

which comes to Rs.9,83,53,148/- by Rs.1,55,20,507/-

(9,83,53,148-8,28,32,641). The same has been duly set

part by the assessee by filing Form No.10 for A.Y.

2008-09, accumulating Rs.4 crores for utilization in

the next five years. Thus we agree with the

Ld.CIT(Appeals) that the utilization of A.Y. 2008-09

included the amount accumulated and kept in bank account in the preceding year of Rs.2,17,47,811/-. And therefore the accumulated income of A.Y. 2007-08, stood utilized in subsequent A.Y. i.e. A.Y. 2008-09. We therefore find no reason to interfere in the order of the CIT(A) deleting addition of Rs.2,17,47,811/- .

Grounds of appeal raised by the Revenue are, therefore, dismissed.

Order pronounced in the Open Court. Sd/- Sd/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 15th May, 2018 *Rati* Copy to: • The Appellant • The Respondent • The CIT(A) • The CIT • The DR Assistant Registrar, ITAT, Chandigarh