TMI Blog2016 (5) TMI 65X X X X Extracts X X X X X X X X Extracts X X X X ..... . Rifaur Rahman (Accountant Member) For the Petitioner : G. V. N. Hari For the Respondent : G. Surya Prasad ORDER S. Rifaur Rahman (Accountant Member) 1. This appeal by the assessee is directed against the order dated February 6, 2015 of the learned Commissioner of Income-tax (Appeals)-9, Hyderabad for the assessment year 2011-12. 2. Briefly the facts are, the assessee is a society registered under section12AA of the Income-tax Act, 1961. The assessee filed its return of income on September 7, 2011 declaring nil income. The assessee accumulated a sum of ₹ 85,00,000 under section 11(2). As per Form 10 filed along with the return, the assessee stated the purpose of accumulation as to be utilised for social-economic programmes . The Assessing Officer held that it was not sufficient compliance for the assessee to state a general and vague activity which is not covered by its aims and objectives in the Form 10, that while plurality of purpose was permitted but these purposes had to be specific, realistic and definite and that it was only by mentioning the object specifically would the Assessing Officer be enabled to monitor its utilisation. To come to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ity of the additional evidence suspect. 7.11 Thirdly, the reason put forth by the appellant for the failure to furnish the details of the purpose of utilisation, despite claiming to have included its resolution, is that the appellant could not type all these items in the Form 10. The complete relevant extracts of the resolution, as per the additional evidence filed, has been reproduced above. As can be seen, it barely runs into one typed sheet. The appellant has failed to explain why this could not have been typed, particularly when the appellant has thought nothing of filing grounds of appeal running into seven sheets. Indeed, the appellant had enclosed copy of the resolution to the Form 10. The appellant has failed to explain why a photocopy of the resolution could not have been enclosed. 7.12 Fourthly, Form 10 is meant to assist the Assessing Officer in administering the provisions of the Act smoothly. Form 10 is, there fore, a self-contained document duly setting down the full details of the purposes for which the funds are meant to be utilised. Filing of Form 10 in the cavalier fashion, as done by the appellant, defeats the purpose of filing it since the Assessing Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Bank interest 1,14,57,25 3. Other income 23,25,170 2,34,96,480 Gross receipts 2,34,96,480 Less : Amount set aside under section 11(2) of the Income-tax Act, 1961 as per resolution passed on April 22, 2011 85,00,000 II Utilisation : 1,49,96,480 1. On revenue account 1,94,88,244 2. On capital account 1,45,371 1,96,33,615 Utilisation 1,96,33,616 Less : Amount set aside under section 11(2) of the Income-tax Act as per resolution passed on April 11, 2010 65,00,000 1,31,33,615 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee has utilised the whole accumulation set apart in the assessment year 2011-12. There is no dispute that the application of the accumulation was only for the carrying out the objects of the trust. 11. The learned Departmental representative relied on the order of the Commissioner of Income-tax (Appeals) and stressed that the purpose of accumulation has to be for specific object of the trust and not on general objects. 12. Heard arguments of both sides. The Assessing Officer and the learned Commissioner of Income-tax (Appeals) have relied on various case law on the aspect of accumulation of funds for carrying out the objects of the trust and the objects has to be spelt out clearly in the Form 10 to be filed by the assessee. There is no doubt that the assessee has filed Form 10 as per procedure and within the time under section 11(2) of the Act. The assessee has to file Form 10 with the clear objects and not with the vague terms. The judgments were in favour of the Department. 13. We are of the view that the trusts are allowed to accumulate funds for creating long term assets to carry out the main objects of the trust like buildings, buying lands/buildings, etc. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose 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 deposited in the forms or modes specified in sub-section (5) : Provided that in computing the period of ten years referred to in clause (a), the period during which the income could not be applied for the purpose for which it is so accumulated or set apart, due to an order or injunction of any court, shall be excluded : Provided further that in respect of any income accumulated or set apart on or after the 1st day of April, 2001, the provisions of this sub-section shall have effect as if for the words 'ten years' at both the places where they occur, the words 'five years' had been substituted. Explanation.-Any amount credited or paid, out of income referred to in clause (a) or clause (b) of sub-section (1), read with the Explanation to that sub-section, which is not applied, but is accumulated or set apart, to any trust or institution registered under section 12AA or to any fund or institution or trust or any universi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... present scheme, every member shall subscribe a sum of ₹ 25 per month for a period of 25 years. Benefits : (a) in case of death : (i) Members in the age group of below 50 years (as on 31-7-85) will be entitled to the following benefits : (a) A sum of ₹ 500 p.m. shall be paid to the nominee of the deceased member for a period of 15 years. (b) Lump sum additional payment of ₹ 15,000 shall be made to the nominee of the deceased member in addition in the benefit referred to above if the member dies during the period of service in the bank. (ii) Members in the age group of above 50 years (as on 31-7- 1985) will be entitled to the following benefits : (a) A sum of ₹ 500 p.m. shall be paid to the nominee of the deceased member till the age of retirement with a minimum period of 5 years. (b) A lump sum payment of ₹ 15,000 shall be made to the nominee of the deceased member in addition to the benefit referred above (iia) if the member dies during the period of service in the bank. Other benefits are also there which are in case of retirement and these have been given in part 'B' of this scheme to the extent that a sum o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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