Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2020 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2020 (11) TMI 219 - AT - Income TaxExemption u/s 11 - computation of the quantum of 15% of the income derived - HELD THAT:- Assessee has duly exercised the said option which is also accepted by the department and the amount which was set apart as per Explanation-I was reduced from the income derived from property held under trust. That once the income of trust is considered as the income received as well as accrued, then, at the time of allowing the relaxation of application of the said income u/s.11(1)(a) of the Act, a different parameter cannot be applied. DR has given much stress on the term ‘receipt’ as appearing in Section 11(1) of the Act, however, the said term ‘receipt’ of income is only in the context of the person who is in receipt and not in the context of income derived from the property held under the trust. The income derived from the property held under the trust remains the same for computing the benefits as provided u/s.11. Computation of the quantum of 15% of the income derived should be on the basis of the income as declared by the assessee, which is considered for all other purposes. A different meaning of income derived from property can be given for the purpose of calculating the relaxation of accumulation or set apart equivalent to 15% of such income. Hence, the adjustment made while processing the return of income is not in accordance with the provisions of Section 11(1) of the Act and the same is liable to be deleted. Appeal of assessee is allowed.
|