TMI Blog2001 (6) TMI 171X X X X Extracts X X X X X X X X Extracts X X X X ..... eturns of income on 30-10-1995 and 30-10-1996 along with audit report under section 12A(b) of the Act disclosing receipts of Rs. 6,25,752 and Rs. 8,47,274 by way of rent and interest respectively for the assessment years 1995-96 and 1996-97. The assessments were completed on 17-3-1998 and 27-11-1998 fixing the taxable income at Rs. 4,87,660 and Rs. 6,60,854 for the above two years. Along with the returns of income, the assessee had also filed application in Form No. 10 seeking accumulation of income to the extent of Rs. 4,50,000 upto 31-3-2000 for the assessment year 1995-96 and Rs. 5,35,000 upto 31-3-2006 for the assessment year 1996-97. The purpose was explained as under: "To impart instruction in Vedas and Upanishads and to grant schol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on a deposit of Rs. 4,00,000 for a period of ten years on condition that the assessee constructs additional floors as per the specifications made in the deed and that the deposit amount of Rs. 4,00,000 has to be adjusted against the rent at the rate of Rs. 3,350 per month. By another agreement the trust has also leased out another building to Mathrubhoomi Printing and Publishing House for a monthly rent of Rs. 11,000 and deposit of Rs. 6,72,000 for a period of 10 years with the condition that the assessee constructs additional floors as per the specifications made in the trust deed out of its deposits which has to be adjusted against the rent at the rate of Rs. 6,000 per month, The Assessing Officer noticed that the main object of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad complied with all the legal requirements to derive the benefit of the provisions of section 11 of the Income-tax Act, 1961. The notice of accumulation was given in time specifying the purpose. The accumulated amount has been deposited in specified investments under section 11(5). The mere fact that the amount actually spent during a particular year is very low is not a ground for denying the deduction. The assessee had also contended that the decision of the Calcutta High Court in Trustees of Singhania Charitable Trust's case relied on by the Assessing Officer did not prohibit plurality of the purpose of accumulation. The learned Commissioner (Appeals) noted that spending of comparatively smaller amounts for the purpose of the trust and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is in second appeal before the Tribunal. 4. The learned counsel for the assessee submitted that the decision of the Calcutta High Court in Trustees of Singhania Charitable Trust's case relied on by the revenue, is distinguishable on facts. In that case, the assessee, while listing out the purposes of accumulation of income under section 11(2) of the Income-tax Act, 1961, specified all the objects for which the assessee-trust was created in Form No. 10. It was under this circumstance, the Calcutta High Court held the view that the assessee must specify the purposes of accumulation and cannot list au the objects of the trust. In the instant case, there are as many as 21 objects and the assessee has specified only three objects in Form No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purchase, construct obtain on lease or acquire in any other manner land, buildings, etc. for the conduct of the activities of the trust." The learned departmental representative contended that enumeration of the purposes for which fund is accumulated include "purchase, construct, obtain on lease or acquire in any other manner, land, buildings, etc." It is too vague and too broad an object which definitely is hit by the decision of the Hon'ble Calcutta High Court in Trustees of Singhania Charitable Trust's case. The learned departmental representative therefore submitted that the orders of the lower authorities do not call for any interference. 6. We have heard rival submissions and gone through the orders of the revenue authorities, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the objects mentioned in items (a) and (b), namely,- "(a) To impart instructions in Vedas and Upanishads; (b) To grant scholarships to students and scholars of Vedas, Agamas, Aranyakas, Epics, Puranas and Upanishads." We also find considerable force in the arguments of the learned counsel for the assessee that, in fact, the decision of the Hon'ble Calcutta High Court in Trustees of Singhania Charitable Trust's case relied on by the authorities below is in support of the assessee's case. In that case, their Lordships of the Calcutta High Court the report observes thus: "Doubtless, it is not necessary that the assessee has to mention only one specific object. There can be setting apart and accumulation of income for more objects ..... X X X X Extracts X X X X X X X X Extracts X X X X
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