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2011 (5) TMI 640 - AT - Income TaxTrust registered u/s 12A - exemption u/s 11(2) - allowance of deduction over and above 25% of the income - whether 25% of income is a flat deduction or, whether Form No.10 and other formalities are required - Held that:-Firstly, claim of the assessee cannot be rejected merely on the ground that Form No.10 was filed at the time. Secondly, as per section 11(1)(a) the assessee is entitled for flat deduction without any condition or formality of filing form No.10, if income is accumulated or set apart for application of the objects of the trust in India to the extend, it does not exceed 25% of the income. Allowance of deduction over and above 25% of the income, for which the assessee is to satisfy the conditions laid down in section 11(2) - Held that:- The requirement of section 11(2) is that if such income is accumulated or set apart, then such income shall not be included in the total income of the previous year if such person specifies by notice in writing given to the assessing officer in prescribed manner, the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall, in no case exceed 10 years. However, matter is send to AO to verify whether money so accumulated or set apart is invested or deposited in the form or mode specified in sub-section (5) of section 11 - Decided partly in favor of assessee for statistical purpose
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