A.O should take cognizance of the revised audit report in Form No. 10B & allow benefits enshrined in Sec 11 of the Act

Last updated: 25 January 2021

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The Income Tax Appellate Tribunal has ruled that the Assessing Officer must consider a revised audit report submitted in Form 10B. This decision allows the Children Book Trust to claim benefits under Section 11 of the Income Tax Act, 1961, specifically concerning an accumulated sum of Rs. 52,00,000. The Tribunal found that the conditions for accumulation were met.

Court :
ITAT New Delhi

Brief :
This appeal is filed by the assessee against order dated 01/09/2017 passed by CIT(A)-40, Delhi for assessment year 2014-15.

Citation :
I.T.A. No. 7219/DEL/2017 (A.Y 2014-15)

IN THE INCOME TAX APPELLATE TRIBUNAL
DELHI BENCH: ‘B’ NEW DELHI

BEFORE SHRI N. K. BILLAIYA, ACCOUNTANT MEMBER
AND
MS SUCHITRA KAMBLE, JUDICIAL MEMBER

I.T.A. No. 7219/DEL/2017 (A.Y 2014-15)
(THROUGH VIDEO CONFERENCING)

Children Book Trust
4, Nehru House, Bahadur Shah
Zafar Marg, I. P. Estate,
New Delhi
PAN: AAATC0127C
(APPELLANT)

ITO(E)
Ward-1(3)
New Delhi
(RESPONDENT)

Appellant by Sh. K. V. S. R. Krishna, Adv
Respondent by Ms. Nidhi Srivastava, CIT)
DR

Date of Hearing 20.01.2021
Date of Pronouncement 22 .01.2021

ORDER

PER SUCHITRA KAMBLE, JM

This appeal is filed by the assessee against order dated 01/09/2017 passed by CIT(A)-40, Delhi for assessment year 2014-15.

2. The grounds of appeal are as under:-

“1. That Ld.CIT(A) has erred in law and on facts in disallowing a sum of Rs. 52,00,000/- being amount accumulated and set apart u/s 11(2) of Income Tax Act, 1961.

2. The appellant contends that the conditions required for accumulation u/s 11(2) have been satisfied and therefore, the same should have been allowed by the Ld.CIT(A)

To know more in details find the attachment file

FAQ :

The appeal concerned the disallowance of Rs. 52,00,000 accumulated and set apart by the Children Book Trust under Section 11(2) of the Income Tax Act, 1961.

The Tribunal decided that the Assessing Officer should take cognizance of the revised audit report filed in Form 10B.

The ruling allows the assessee to claim the benefits enshrined in Section 11 of the Income Tax Act, 1961.

This judgement relates to the assessment year 2014-15.

The appellant contended that all conditions required for the accumulation of funds under Section 11(2) of the Income Tax Act, 1961, had been satisfied.