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2016 (1) TMI 493 - AT - Income TaxBenefit of accumulation as specified under section 11(2) denied - application of the assessee in form no.10 - Held that:- In the case of the assessee the Assessing Officer has nowhere examined the utilization of funds of previous years as to whether the separate records were kept for each year of accumulation and whether the fund has been utilized for the purpose of the trust within the time limit mentioned in the provisions of the Act relevant to the Assessment Year in which it has been accumulated. Rather the Assessing Officer has only dealt with the issue, of whether the accumulation of fund is for a specific purpose or not, which in the case of assessee was properly done as they have mentioned that they are accumulating/setting apart funds for the purpose of the trust. 14. The claim of the assessee further gets strengthened looking to the history of the assessee’s assessment proceedings wherein its setting apart/accumulation of funds in form no.10 for the purpose of the trust has duly been accepted by the Assessing authorities and the same is being continued in the years after the year under appeal before us. Also in the case of DIT (Exemption) vs. Guru Nanak Vidya Bhandar Trust (2004 (1) TMI 11 - DELHI High Court), Hon’ble Delhi High Court has dealt with the issue wherein assessee’s claim for accumulation set out in form no.10 were accepted in the preceding and subsequent years to held CIT(A) was not justified in upholding the action of Assessing Officer in rejecting the application in form No.10 for accumulation of funds u/s 11(2) of the Act and accordingly adding to the income of the assessee - Decided in favour of assessee
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