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2015 (6) TMI 38 - KARNATAKA HIGH COURT

2015 (6) TMI 38 - KARNATAKA HIGH COURT - [2015] 378 ITR 483 - Benefit u/s 11(2) denied - Entitlement to accumulation of income of 85% of the donations - Held that:- In the present case, we find that the revenue does not dispute the fact that all the three purposes specified by the Assessee in Form 10 are for achieving the objects of the trust, and that the purposes as well as objects, are both charitable. Merely because more than one purpose has been specified and details about the plan of such .....

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ion 11 of the I.T.Act, 1961. - Decided in favour of assesse. - ITA No. 752 of 2009 (IT) - Dated:- 13-3-2015 - Vineet Saran And S. Sujatha,JJ. For the Appellant : Sri K V Aravind, Adv. For the Respondents : Sri A Shankar & M Lava, Advs. JUDGMENT This is an appeal filed by the Revenue against the order of the Tribunal whereby the benefit of Section 11(2) of the Income Tax Act, 1961 (for short 'the Act) has been granted in favour of the assessee. 2. This appeal was admitted to consider the .....

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assessment year ?" 3. The brief facts of this case are: That the respondent - assessee is a registered charitable trust. For the relevant Assessment Year 2005-06, the Assessee had declared its total income as nil. In the said year, the Assessee - Trust had collected donations of ₹ 32,47,909/- and had made incidental expenses of ₹ 7527/-. The remaining amount was claimed by the Assessee as accumulation u/s 11(2) of the Act by filing Form -10 in which the following purposes were .....

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terms of some of the 14 objects of the trust deed, the Assessing Officer disallowed the accumulation holding the purpose stated was vague and thus the benefit of Section 11(2) of the Act was denied. Reliance in this regard was placed by the learned Assessing Officer on the decision of the Calcutta High Court rendered in the case of DIRECTOR OF INCOME TAX (EXEMPTION) vs TRUSTEES OF SINGHANIA CHARITABLE TRUST, (1993) 199 ITR 819 (CAL). 5. Challenging the said order, the assessee filed appeal befor .....

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his further appeal has been filed by the revenue. 6. We have heard Sri K.V. Aravind, learned counsel for the appellant as well as Sri A.Shankar, learned counsel for the respondent, at length and perused the records. 7. It is not disputed by the parties that the objects of the trust, as given in the trust deed, were 14 in number. The three purposes for which accumulation was prayed for and mentioned in Form -10 by the assessee were undisputedly covered by the objects of the trust. As such, it can .....

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se was permissible, but the generality of the purpose for which the benefit was claimed u/s 11(2) of the Act was not found to be permissible as the purpose for which the trust required that accumulation of income was not specified and clearly mentioned. Hence the matter was remanded back to the Tribunal permitting the assessee to adduce fresh evidence. 9. The said judgment of the Calcutta High Court was considered by the Delhi High Court in the case of COMMISSIONER OF INCOME TAX vs HOTEL & R .....

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