TMI Blog2007 (1) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... ted 21st January, 2006 passed by the Income Tax Appellate Tribunal, Delhi Bench 'E', New Delhi in ITA No.1384/D/2002 relevant for the assessment year 1997-98. 2 After hearing learned counsel for the parties, we are of the view that the following substantial question of law arises for our consideration:- " Whether the Income Tax Appellate Tribunal was justified in holding that the Assesses was not entitled to accumulate income for the objects of the Charitable Trust without specifying the purposes for which the income is accumulated?" 3 We are of the view that since the question can be answered at this stage because we have heard arguments of learned counsel for both the parties, we proceed to dispose of this appeal. 4 Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adras High Court. Both of them say that the purpose of accumulation of income should be specific. In Hotel and Restaurants Association,[2003] 261 ITR 190 (Delhi) the question of law that was considered, was as follows:- (page191) : Whether, on the facts and circumstances of the case, the Tribunal is justified in holding that the accumulation of income by the Assesses under Section 11(2) of the Income Tax Act, 1961 (hereinafter referred to as `the Act') for all objects for which the trust was created and not for specific purpose was neither prejudicial nor erroneous to the interests of the Revenue?"(emphasis given). 8 The contention of learned counsel for the Revenue in that case was that the appellate authority had failed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was followed in Director of Income Tax (Exemption) vs. Daulat Ram Education Society, (2005) 278 ITR 260 (Delhi). The only distinguishing feature in the latter case is that out of 29 purposes/objects stipulated in the memorandum of association, the assesses had specified eight purposes and it was held that the assessee was entitled for exemption under Section 11 of the Act. 11 Learned counsel for the Revenue has contended that if the observations of this Court in Hotel and Restaurants Association are carefully read, then the purpose should be specified. We are of the view that given the question of law in Hotel and Restaurants Association, the conclusion of this Court was that the details of the purposes for which the income was accu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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