Jain Citizen Education Society Vs. ITO

Parties Involved

Facts Summary

The assessee, Jain Citizen Education Society, is an educational trust registered under section 12A of the Income Tax Act, 1961. It filed its return of income on 28.11.2023, claiming exemption under section 11 of the Act. The assessee claimed application of income amounting to Rs.2,92,61,905/- towards its charitable objects and further claimed accumulation of 15% of its income amounting to Rs.43,89,286/- under section 11(1)(a) of the Act and an additional accumulation of Rs.16,60,000/- under section 11(2) of the Act by filing Form No.10 on 03.11.2023. The assessee argued that the Central Board of Direct Taxes (CBDT) extended the due date for filing the return of income to 30.11.2023, and thus, the due date for filing Form No.10 was also extended. However, the Assessing Officer denied the benefit of accumulation and raised a demand of Rs.20,99,658/-. The assessee appealed to the Commissioner of Income Tax (Appeals) (CIT(A)), which was dismissed. The assessee then appealed to the Income Tax Appellate Tribunal (ITAT).…

Legal Issues

• 1. Disallowance of accumulation of 15 per cent application of funds amounting to Rs. 43,89,286/- in terms of third proviso to section 10(23C) of the Income Tax Act, 1961
• 2. Disallowance of Rs. 16,60,000/- being amount of accumulation in excess of 15 per cent duly reported in Form 10.
• 3. In the facts and circumstances of the case, benefit of claim of exemption u/s 11 of the Act could not have been denied merely on the technical count that Form 10BB (i.e. Audit Report) was not e-filed within the specified due-date.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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