TMI Blog2012 (10) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... ant Member - This is an appeal filed by the Revenue against the order dated 23.02.2011 passed by the Ld. CIT(A), Ghaziabad for the Assessment Year 2006-07 on the following grounds :- "1. The Ld. CIT(A) has erred in law and on facts in deleting the addition of Rs. 29,33,910/- on account of denial of accumulation claimed u/s 11(2) of the IT Act, 1961 treating the general purposes as specific ones. 2. The Ld. CIT(A) has erred in law and on facts by not appreciating the facts that purpose for accumulating the income is not covered according to section 11(2) of the I.T. Act. 3. Appellant craves leave to amend, alter, add, or modify any ground or grounds of appeal either before or at the time of hearing of case." 2. The brief facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses of accumulation of Rs. 29,33,907/- u/s 11(2) of the Act therefore neither the authoritative decisions cited by the learned Assessing Officer in his assessment order namely Director of Income-tax (Exemption) v. Trustees of Singhania Charitable Trust (Supra) and CIT v. M.Ct. Muthaih Family Trust (Supra) nor the various observations made by the Assessing Officer while denying such accumulation to the appellant are applicable, otherwise also in my considered opinion in the light of authoritative decisions relied upon by the appellant the accumulation of Rs. 29,33,907 claimed by the appellant u/s 11(2) of the Act, cannot be denied. Keeping in view the totality of facts, arguments of learned A.R., evidences on records and the various author ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther incur about Rs. 3 lacs towards purchase of noiseless generator, about Rs. 5 lacs towards purchase of computer and laptops, printer etc. about Rs. 1 lac towards EPBX of 100 lines systems, about Rs. 1 lac towards motorized automatic grass cutting machine etc. (c) To meet expenses laid down/incurred for the attainment of the objectives of the trust/institution. Viz/namely assessee educational institution will develop software's and website in which about 2 lacs will be incurred." 4. Section 11(1) provides subject to the provisions of section 60 to 63, the income which is derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India; and, wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thiah Family Trust, 245 ITR 400 (Madras). The Assessing Officer has wrongly applied the judgment of Calcutta High Court in the case of Director of Income-tax (Exemption) v. Trustees of Singhania Charitable Trust as the facts of the case under consideration and the facts of that case are distinguishable. In the case of Director of Income-tax (Exemption) v. Trustees of Singhania Charitable Trust, the assessee trust for the purpose of accumulation of income listed all the charitable objects for which the assessee trust was created. Under that circumstances the Court held that the specific purpose as required by section 11(2) admits of no amount of vagueness about such purpose. In the case under consideration, it has been noticed that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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