South Zone Cultural Centre vs. The Assistant Commissioner of Income Tax

Parties Involved

Facts Summary

The assessee, a society registered under section 12AA of the Income Tax Act, 1961, filed its return of income on 08.10.2018 declaring total income at Rs.NIL. The return was selected for scrutiny under CASS to examine the issue of 'Accumulation of Income by Trust'. The Assessing Officer (AO) noted that the assessee society had applied an amount of Rs.48,88,871/- during the year which was accumulated during FY 2011-12. The AO disallowed this amount as it was accumulated beyond the five-year period required under section 11(2)(a) of the Act. The Commissioner of Income Tax (Appeals) upheld the AO's order, leading to the assessee's appeal.…

Legal Issues

• 1. Whether the addition made by the AO for Rs.48,88,871/- under section 11(3)(c) of the Act is justified.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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