TMI Blog2015 (11) TMI 390X X X X Extracts X X X X X X X X Extracts X X X X ..... fore the completion of the assessment. In view of the ratio laid down by the Supreme Court in Nagpur Hotel Owners' Association (2000 (12) TMI 99 - SUPREME Court) and the acceptance of the date of information by the assessee as March 10, 1997, viz., before the date of completion of assessment by the Tribunal, we do not think that the objection raised by the learned Counsel for the Revenue has any substance. The explanation in the letter dated March 10, 1997, is in sufficient compliance with section 11(2) of the Act. - Decided in favour of assessee. - Income Tax Tribunal Appeal No. 67 of 2004. - - - Dated:- 7-4-2015 - DILIP B. BHOSALE and A. RAMALINGESWARA RAO, JJ. Challa Gunaranjan, Advocate, for the appellant. S. R. Ashok, Advocate, for the respondent. JUDGMENT The judgment of the court was delivered by 1. A. Ramalingeswara Rao J.-This appeal was filed under section 260A of the Income-tax Act, 1961 (for short, the Act ), against the order in I. T. A. No. 133/V/1997 passed by the Income-tax Appellate Tribunal, Visakhapatnam, on March 5, 2003. 2. In this appeal filed by the assessee, the substantial question of law that arises for our consideratio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 passing on notification/ information to the Assessing Officer regarding the purpose of accu mulation, yet the assessee has to pass the information before the assessment is completed. Even holding such view of the matter and without taking resort to the case law, strictly by the Assessing Officer the information passed on to the Assessing Officer on March 10, 1997, the information was not sufficient and it was just stating that 'for future utilisation towards the object of the trust'. It is not specific and in the absence of such specific object, only compliance with the object of the trust will not amount compliance with the specific pur pose a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years ; (b) the money so accumulated or set apart is invested or depo sited in the forms or modes specified in sub-section (5) . . . 6. A perusal of the above provision makes it clear that the assessee should supply the information in Form No.10 and indicate the purposes for which the accumulated funds were meant to be utilised. 7. The said provision came up for consideration in Trustees of Singhania Charitable Trust (supra). The High Court of Calcutta was considering the following questions of law when they were referred 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. Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d by the Tribunal. 9. The said section was considered by the High Court of Delhi in CIT v. Hotel and Restaurant Association [2003] 261 ITR 190 (Delhi) and it was held as follows (page 192) : It is true that specification of certain purpose or purposes is needed for accumulations of the trust's income under section 11(2) of the Act. At the same time the purpose or purposes to be specified cannot be beyond the objects of the trust. Plurality of the purposes for accumulation is not precluded but it depends on the precise purpose for which the accumulation is intended. In the present case, both the appellate authorities below have recorded a concurrent finding that the income was sought to be accumulated by the assessee to achieve the object for which the assessee was incorporated. It is not the case of the Revenue that any of the objects of the assessee-company were not for charitable purpose. The aforementioned finding by the Tri bunal is essentially a finding of fact giving rise to no question of law. 10. In another case before the Delhi High Court in DIT v. Mitsui and Co. Environmental Trust [2008] 303 ITR 111 (Delhi) the above issue was considered and the aforementi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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