Amendment in section 11(3)(c) vide Finance Act 2022 omitting extra period of one year following the expiry of the period of accumulation of five years applies prospectively in respect of fresh accumulations under section 11(2) made from assessment year 2023-24 onwards and not to earlier years.

42. (2025) 176 taxmann.com 661 (Mum Trib)

Dadar Digamber Jain Mumukshu Mandal vs. CIT

ITA No.: 2446/Mum/2025

A.Y.: 2023-24 Dated: 15.07.2025

Section: 11

Amendment in section 11(3)(c) vide Finance Act 2022 omitting extra period of one year following the expiry of the period of accumulation of five years applies prospectively in respect of fresh accumulations under section 11(2) made from assessment year 2023-24 onwards and not to earlier years.

FACTS

The assessee trust filed its original return of income, declaring total income of ₹14,37,197. The return was processed under section 143(1) making an adjustment of ₹ 75,66,540 being additions under section 11(3) on account of unutilised set aside / accumulated funds under section 11(2) relating to FY 2016-17 (₹ 35,66,540) and FY 2017-18 (₹ 40,00,000).

Aggrieved, the assessee went in appeal before CIT(A), who upheld the additions.

Aggrieved, the assessee filed an appeal before ITAT.

HELD

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