Held that the Assessing Officer had computed the accumulation at 15 per cent. on the net revenue after reducing all the expenditure in the form of application of income for charitable purposes. This was contrary to the law laid down by the Supreme Court. There was a mistake apparent on the face of the record which ought to have been rectified under section 154 of the Act. The Assessing Officer was to allow accumulation under section 11(1)(a) of the Act as claimed by the assessee in the application under section 154 of the Act. (AY. 2014-15)
Bellary Educational Services Trust v. Dy. CIT(E) (2021) 90 ITR 94 (SN) (Bang.)(Trib.)
S. 154 : Rectification of mistake-Accumulation of 15% of gross receipts-Assessing Officer issuing intimation considering net revenue-Mistake apparent on record-Ought to have rectified. [S. 11(1)(a), 143(1)]