Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (11) TMI 486 - AT - Income TaxEligibility of exemption u/s 11 - non compliance of provisions of section 11(2) for approval of accumulation of surplus fund above 15% for the purpose of future utilisation during assessment proceedings - Held that:- If an assessee whose income is to be assessed u/s 11, 12 it failed to apply 85% of its income on charitable purpose but wants to accumulate or set apart that income for future years application then such income would not be taxable in the year of receipt. The assessee has to fulfill certain conditions giving specifically in writing to the AO in the prescribed form, the purpose for which the income is being accumulated or set apart. The reasons for this would be that in future years such income shall be used for those specified purposes. The assessee has to disclose the period also. In any condition it would not exceed 10 years. The amount so accumulated or set apart has to be deposited in the specified modes. Hence, accumulation of surplus fund above 15% for the purpose of future utilization is not allowed. The assessee failed to comply with the conditions enumerated in section 11(2). It has not filed form No. 10 before the completion of asstt. order - Decided against the assessee. It is also held that disallowance for the purpose of accumulation is to be restricted for the amount over and above of 15% of the limit and will not be applicable on the remaining 15% thereby allowing exemption u/s 11 - Decided against the Revenue.
|