Assessee, a charitable trust, filed its return of income claiming exemption under section 11. During the relevant year, assessee utilised accumulated income pertaining to financial years 2016-17. Assessing Officer held that as per amended provisions of section 11(3)(c), the accumulation period was limited to five years and, thus, he brought said amount to tax as income of assessee.CIT(A) up held the adjustment made by the Assessing Officer. On appeal the Tribunal held that\u00a0\u00a0 amendment to section 11(3)(c) by Finance Act, 2022 with effect from 1-4-2023 which omitted extra period of one year following expiry of initial period of accumulation of five years was prospective in nature and, thus, same would be applicable only to fresh accumulations from assessment year 2023-24 onwards. As far as accumulation relating to financial years 2016-17 was concerned, assessee had time window till 31-3-2023 by which it could utilize accumulated income and in that view of matter, amendment brought in by Finance Act, 2022, did not debar assessee from availing said time window in respect of existing accumulations and amendment had to be read prospectively in respect of fresh accumulations for period pertaining to previous year starting from 1-4-2022 onwards. Further, as far as the assessment year was concerned, no addition could be made for the accumulation of income pertaining to the financial year 2017-18 as the assessee continued to be guided by provisions as existed at the relevant point in time and the time window of six years as provided.\u00a0\u00a0 The amendment made by the Finance Act, 2022, could not curtail said time window and had to be applied prospectively in respect of fresh accumulations. (AY. 2023-24)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 11: Property held for charitable purposes-Accumulation of income-Amendment brought in by Finance Act, 2022, did not debar assessee from availing said time window in respect of existing accumulations and amendment had to be read prospectively in respect of fresh accumulations for the period pertaining to previous year starting from 1-4-2022 onwards. [S.11(3)(c)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-61047","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fSD","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=61047"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61047\/revisions"}],"predecessor-version":[{"id":61048,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/61047\/revisions\/61048"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=61047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=61047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=61047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}