TMI Blog2021 (2) TMI 414X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 and do not apply to this year. Therefore, respectfully following the same, we would hold that dividend income being exempt u/s 10(34) could not be brought to tax by applying the provisions of Sec.11 to 13 of the Act. The amended provision restricting this exemption is applicable only from AY 2015-16. The assessee succeeds on this issue Accumulate or set apart trust income to the extent of 15% for utilization for charitable purposes in subsequent years - HELD THAT:- We find that the assessee had filed Form No.10 for AY 2010-11 wherein an amount of ₹ 410.84 Lacs has been set-apart for subsequent utilization up-to previous year 2014-15. The same is also evident from assessment order u/s 143(3) dated 27/12/2012. The amount of ͅ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unt of ₹ 410.84 Lacs has been spread by assessee equally over 5 years in the computation of income. If the said amount of ₹ 82.16 Lacs is excluded from Ld. AO s computations, the assessee was required to spend an amount of ₹ 160.48 Lacs (₹ 91.48 Lacs plus ₹ 68 Lacs) during the year. Out of the same, The assessee has already applied the amount of ₹ 103.43 Lacs during the year towards the objects of the trust and the balance amount has been set aside u/s 11(1)(a) as well as under clause (2) of Explanation (renumbered as Explanation-1 by Finance Act, 2017) to Sec. 11(1) to be spent in immediately next year i.e. 2013-14. Hence, there is no underutilization as alleged by Ld.AO. The conclusion stem from e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lized the same within the statutory period as per the law of accumulation u/s 11 read with Form No.10. B. Dividend Exempt 1. On the facts and circumstances and in law the CIT(A) grossly erred in rejecting the claim of the appellant that dividend income of ₹ 1,72,169 is exempt from tax. 2. The issue of exemption of dividend income is squarely covered by various decisions of the court and is covered u/s 11(5) and is permissible as per law. 2. We have carefully heard the rival submissions and perused relevant material on record including documents placed in the paperbook. Our adjudication to the subject matter of appeal would be as given in succeeding paragraphs. 3.1 The assessee, being AOP trust regd. u/s 12A, was as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e s favor by the decision of this Tribunal in Jamshedji Tata Trust V/s Jt.DIT (E) (44 Taxmann.com 447) wherein coordinate bench drawing analogy from the decision of Hon ble Delhi High Court in CIT V/s Divine Light Mission (278 ITR 659) held that dividend income being exempt u/s 10(34) could not be brought to tax by applying the provisions of Sec. 11 to 13 of the Act. We also note that amendment to Sec.11 by way of insertion of clause (7) by Finance Act, 2014 to nullify the effect of this decision is applicable only with effect from 01/04/2015 and do not apply to this year. Therefore, respectfully following the same, we would hold that dividend income being exempt u/s 10(34) could not be brought to tax by applying the provisions of Sec.1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acs has been spread by assessee equally over 5 years in the computation of income. However, if the said amount of ₹ 82.16 Lacs is excluded from Ld. AO s computations, the assessee was required to spend an amount of ₹ 160.48 Lacs (₹ 91.48 Lacs plus ₹ 68 Lacs) during the year. Out of the same, The assessee has already applied the amount of ₹ 103.43 Lacs during the year towards the objects of the trust and the balance amount has been set aside u/s 11(1)(a) as well as under clause (2) of Explanation (renumbered as Explanation-1 by Finance Act, 2017) to Sec. 11(1) to be spent in immediately next year i.e. 2013-14. Hence, there is no underutilization as alleged by Ld.AO. The conclusion stem from erroneous assum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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