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TMI Blog2015 (11) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the assessee, the substantial question of law that arises for our consideration is as follows : "Whether, on the facts and in the circumstances of the case, the order of the Income-tax Appellate Tribunal, Visakhapatnam, was perverse in reversing the order passed by the Commissioner of Income-tax (Appeals) so far as disallowing the benefit of accumula tion by the assessee of an amount of Rs. 3,00,000 under section 11(2) of the Act ?" 3. The assessee is a trust formed for charitable purposes by a deed of trust dated November 17, 1995. The objects of the trust were mentioned in clause 3 of the deed of trust and they include upliftment of the weaker sections of the society, advancement of the Bharatiya Samskriti, running schools and col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peals), Vijayawada, who, by his order dated August 29, 1997, allowed the appeal by placing reliance on DIT (Exemption) v. Trustees of Singhania Charitable Trust [1993] 199 ITR 819 (Cal). Challenging the said order of the appellate authority, the Revenue preferred an appeal before the Income-tax Appellate Tribunal, Visakhapatnam, in I. T. A. No. 133/V/1997. The Tribunal, by its order dated March 5, 2003, reversed the order of the Commissioner of Income-tax (Appeals) dated August 29, 1997, and allowed the appeal preferred by the Revenue holding as follows : "In view of the latest position of law as has been held by the apex court in the case of Nagpur Hotel Owners' Association, although there is no specific time limit in the statue for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... liance with section 11(2) of the Act. She also submitted that though the Tribunal has taken note of the explanation dated March 10, 1997, it has not gone into the contents of the said explanation but merely quoted from the order of the Assessing Officer and, hence, the order of the Tribunal is incorrect in law. Learned counsel appearing for the Revenue, on the other hand, submitted, by placing reliance on rule 17 of the Income-tax Rules read with section 139 of the Act that the assessee should have filed required information by September 30, 1996, but submitted the information only on March 10, 1997, and, hence, could not be taken into consideration. But he fairly submitted that the explanation in the letter dated March 10, 1997, is in suff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red to it under section 256(1) of the Act for the assessment year 1984-85 (page 820 of 199 ITR) : "1. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that there is nothing illegal on the part of the assessee in giving notice to the Income-tax Officer in Form No. 10 listing all its objects for the purpose of accumulation of income as provided in section 11(2) of the Income-tax Act, 1961, which requires specification of the purposes ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in cancelling the order of the Commissioner of Income-tax under section 263 of the Income-tax Act, 1961, holding that the assessment of the Income-tax Officer allowin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd the objects clause of the trust and the Legislature could not have thought of the need of specification of the purpose if it did not have in mind the particularity of the purpose or purposes falling within the ambit of the objects clause of the trust deed. Accordingly, it answered question No. 2 in the negative and declined to answer question No. 1. It remanded the matter to the Tribunal to allow the assessee to adduce fresh evidence whether in the form of any resolution or otherwise showing that the specific purpose for which the trust requires the accumulation of the income exists and observed that the said evidence should be considered by the Tribunal. 9. The said section was considered by the High Court of Delhi in CIT v. Hotel and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... authority. The Supreme Court categorically held that the intimation required under section 11 of the Act has to be furnished before the assessing authority before he completes the concerned assessment. 12. In the case before us, the required information was furnished through Form No. 10 along with the return and subsequently on March 10, 1997, the assessee submitted another letter to the Assessing Officer intimating the specific purpose for which the said amount was sought to be utilised by indicating that they want to utilise the amount for the objects mentioned in clause 3(a) of the trust deed. Unlike the facts mentioned in the aforementioned case before the Calcutta High Court, in the instant case, the assessee specifically mentioned th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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