IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘B’: NEW DELHI BEFORE SHRI VIKAS AWASTHY, JUDICIAL MEMBER and SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER (Assessment Year: 2018-19)

Hamdard National Foundation (India), vs. ACIT

2A/3, Hamdard Building, Circle Exempt 1(1), Asaf Ali Road, New Delhi.

Delhi – 110 002.

(PAN : AAATH0843G)

(APPELLANT) (RESPONDENT)

ASSESSEE BY : Shri R.M. Mehta, CA REVENUE BY : Shri Vivek Kumar Upadhyay, Sr. DR Date of Hearing : 18.11.2024 Date of Order : 07.02.2025

O R D E R

PER S. RIFAUR RAHMAN, JM:

1. This appeal has been filed by the assessee against the order of ld.

Commissioner of Income-tax (Appeals)/National Faceless Appeal Centre (NFAC), Delhi dated 06.05.2024 for the Assessment Year 2018-19.

2. Brief facts of the case are, assessee filed its return of income on

12.10.2018 declaring total income of Rs.nil after claiming exemption under section 11 of the Income-tax Act, 1961 (for short ‘the Act’) to the extent of Rs.2,56,03,360/-. The case was selected for scrutiny through CASS for the reason continuous accumulation of profit in Trust, tax credit claimed in ITR is less than tax credit available in 26AS, large amount of donation given to other organization in schedule ER and claim of large value refund. Accordingly, notices u/s 143(2) and 142(1) of the Act were issued and served on the assessee. In response, ld. AR of the assessee submitted the relevant information as called for.

3. During assessment proceedings, the Assessing Officer observed that assessee has accumulated Rs.2,56,03,360/- over and above 15% accumulation of receipts for the purpose of establishment of an English Medium Higher Secondary School and the assessee has filed the Form 10 along with return of income and in support of the above claim, the assessee was asked to submit resolution of Board of Directors by which decision to make such an accumulation was taken. The assessee has submitted the relevant information. On perusal of the same, the Assessing Officer observed that the date of resolution filed by the assessee is 24.10.2018 while the date of filing of Form 10B is 06.10.2018 and the date of filing of return for the relevant assessment year was 12.10.2018. The Assessing Officer observed that from the chronology of events, the date of resolution i.e. 24.10.2018 by which the decision of the purpose of accumulation was taken after the date of filing of return of income. He observed that at the time of filing the return of income and filing of Form 10B i.e. on 06.10.2018, the assessee was not clear on the intentions and purposes for which the accumulation is being done. With the above observation, assessee was issued a show-cause notice on the proposed addition why it should not be made. In its reply dated 13.05.2021, the assessee has submitted that accumulation is not an after- thought as alleged in the show-cause notice and the accumulation satisfies the statutory requirements envisaged in section 11 (2) of the Act read with Rule 17 (2) of the Income-tax Rules, 1962. There is no specific date mentioned in the Act or Rule for the passing of the resolution and it emphasised only on the date of filing of notice in Form 10. After considering submissions of the assessee, Assessing Officer disallowed the same.

4. Aggrieved with the above order, assessee preferred an appeal before the NFAC, Delhi and made submissions. After considering the grounds of appeal and submissions of the assessee, ld. CIT (A) dismissed the grounds raised by the assessee with the following observations :-

Paras 6.3.1. to 6.3.4

5. Aggrieved with the above order, assessee is in appeal before us raising following grounds of appeal :-

“1. The Ld. CIT(A) erred both on facts and in law in upholding the order passed by the AO denying the benefit of accumulation made u/s 11 (2) of the Income Tax Act,1961 (“the Act”) to the tune of Rs.2,56,03,360/-.

2. That both the Ld. CIT(A) and the AO have ignored the Statutory Provisions, specifically brought to their notice, the contention bein