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| The Tax Publishers2020 TaxPub(DT) 0285 (Bom-HC) : (2020) 428 ITR 0030 : (2020) 312 CTR 0430 INCOME TAX ACT, 1961
Section 11(2)
Though benefit of accumulation under section 11(2) was refused by CIT(E) as assessee had made no claim of accumulation in return of income, but the claim had been made under a wrong head, which was not considered by CIT(E) and that entry was made due to an error or it was a deliberate act, thus, proceedings were remanded to the CIT(E) to consider this aspect.
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Charitable trust - Exemption under section 11 - Accumulation of income - Entry made under a wrong head
Assessee claimed accumulation of income under section 11(2). Benefit of accumulation under section 11(2) was refused by CIT(E) as the assessee had made no claim of accumulation under section 11(2) in the return of income and no cogent reason was given for condonation of delay. The assessee's contention was that the claim had been made under a wrong head. Held: There was no finding in the order as to whether entry was made due to an error or it was a deliberate act. The case of the assessee of an error of making a claim under a wrong head needed to be considered by the CIT(E). It was for the CIT(E) to decide whether the action of the assessee was due to inadvertence as claimed by the assessee or was a part of a design as claimed by CIT(E). Therefore, it was appropriate to remand the proceedings to the CIT(E) to consider this aspect. Thus, the order passed by the CIT(E) was set aside.
REFERRED :
FAVOUR : Matter remanded.
A.Y. :
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