9911796707
TMI Blog2015 (12) TMI 1499X X X X Extracts X X X X X X X X Extracts X X X X ..... he disallowed amount of Rs. 5,16,930. 2. The brief facts of the case are that the assessee-trust filed its return of income for the assessment year 2008-09 on January 22, 2009 declaring "nil" income after claiming exemption under section 11 of the Income-tax Act. Along with the return of income the assessee also filed Form 10 seeking permission to accumulate income for application in subsequent years. During the assessment proceedings under section 143(3) of the Act, the Assessing Officer observed that Form 10 does not mention the specific purpose for which the amount is being accumulated. He, therefore held Form 10 to be defective. An opportunity of rectifying the defects in Form 10 was given to the assessee and in response to the said no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the trust. He submitted that during the course of the assessment proceedings, the assessee has furnished the specific purpose for which the funds have been set aside and in such circumstances, the accumulation cannot be denied. He submitted that this issue is covered by the decision of the jurisdictional High Court in the case of Samaj Seva Nidhi v. Asst. CIT (Inv.) [2015] 376 ITR 507 (T & AP) wherein it was held that where the required information was not furnished through Form 10 along with the return of income and subsequently, the assessee submitted another letter to the Assessing Officer intimating specific purpose for which the amount was sought to be utilised, the information furnished before the completion of the assessment requ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on before the completion of the assessment, it is due compliance of the law and the assessee is eligible to accumulate such income. For coming to this conclusion the hon'ble High Court has considered the judgment of the hon'ble High Court of Calcutta in the case of Director of I.T (Exemption) v. Trustees of Singhania Charitable Trust reported in [1993] 199 ITR 819 (Cal) and also the decision of the hon'ble Delhi High Court in the case of CIT v. Hotel and Restaurant Association [2003] 261 ITR 190 (Delhi) and CIT v. Nagpur Hotel Owners' Association [2001] 247 ITR 201 (SC) for coming to this decision. The relevant portion of the decision is reproduced hereunder for ready reference (page 511 of 376 ITR) : "5. Section 11(2) of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 parr of the assessee in giving notice to the Income-tax Officer in Form 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 allowing accumulation of the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f 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 consid ered by the Tribunal. 9. The said section was considered by the High Court of Delhi in CIT v. Hotel and Restaurant Association ..... X X X X Extracts X X X X X X X X Extracts X X X X
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