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2012 (12) TMI 9 - ITAT, DELHICharitable Trust – accumulation and application of income - inter-charity donations out of accumulation of income in excess of 15% of income – whether Explanation below Sec. 11(2) could be interpreted to draw a distinction between accumulation of income in excess of 15% and upto 15% of income - assessee Trust having income of Rs 6.41 crores, had incurred expenditure of Rs 7.80 lacs during the year including Rs 2.50 crores donation – Revenue contending as to how donation of Rs 2.50 crores could be considered as application of income in view of Explanation to sec. 11(2) on the ground that the said donation was not paid out of the current year’s income but from the accumulation of income Held that:- It has been held in case of Bagri Foundation (2010 (7) TMI 85 - DELHI HIGH COURT ) that “Explanation” appended after section 11(2) is nothing but an additional condition attached to accumulation in excess of 15 per cent permitted u/s 11(2). It cannot be held as a condition on accumulation up to 15 per cent as provided for in section 11(1)(a) also. There is no rational classification for imposing the restriction as contained in the “Explanation” to the accumulation of up to 15 per cent also when there is no such restriction to donating the entire income of a year to another charitable trust. Hence, CIT(A) in view of aforesaid decision, has rightly deleted the addition – Decided against Revenue
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