TMI Blog2002 (7) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... lding that the donation received by the assessee-trust of Rs. 1,85,064 which was not utilised for the object of the trust was not income of the trust. We, therefore, answer the question referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue. - - - - - Dated:- 18-7-2002 - Judge(s) : M. S. SHAH., K. A. PUJ. JUDGMENT The judgment of the court was delivered by K.A. Puj J.-This reference was made at the instance of the Revenue and the following question of law was referred for the opinion of this court: "Whether the Appellate Tribunal is right in law and on facts in holding that donation received by the assessee-trust of Rs. 1,85,064 which was not uti lised for the object of the trust, was not inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... awing the statement of case in the present reference, the Tribunal has also observed that an identical question has been referred in the case of another assessee in R.A. No. 1228/Ahd. of 1980 vide statement of case dated February 3, 1983. Reference arising out of R.A. No. 1228/Ahd. of 1980 in the case of Shri Plot Swetamber Murti Pujak Jain Mandal being Income-tax Reference No. 141 Of 1983, was decided by this court on December 19, 1995. In that case also, this court was called upon to decide the question as to whether the contributions to Deva Dravya fund should be treated as specifically earmarked for the corpus of the trust and consequently these contributions were out of the purview of the provisions of section 12 of the Act. While de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall apply accordingly." On the plain reading of section, it is obvious that any voluntary contribution which is made with a specific direction that they shall form part of the corpus of the trust or institution would not be deemed to be income derived from the property held under trust wholly for charitable or religious purposes. In our view, the earlier decision of this court in the case of Shri Plot Swetamber Murti Pujak Jain Mandal as well as the provisions contained in section 12 of the Act squarely cover the issue in favour of the assessee. However, at this stage, Mr. M.R. Bhatt, learned senior standing counsel for the Revenue, has invited our attention to the decision of the Supreme Court in the case of State of Kerala v. M.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as to whether the assessee has to move all application before the Income-tax Officer for the purpose of claiming exemption under section 11 of the Act on the ground that the income is to be accumulated and the said income shall not form part of the taxable income. In that context, the Supreme Court has observed as under: "It is abundantly clear from the wording of sub-section (2) of section 11 of the Income-tax Act, 1961, that it is mandatory for the person claiming the benefit of section 11 to intimate to the assessing authority the particulars required, under rule 17 in Form No. 10 of the Income-tax Rules, 1962. If during the assessment proceedings the Assessing Officer does not have the necessary information, the question of excluding ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecific purpose and towards maintenance of the trust. We are, therefore, of the view that the reliance placed on this decision is also misconceived. Mr. Bhatt has further invited our attention to the decision of the Supreme Court in CIT v. Programme for Community Organization [2001] 248 ITR 1. In that case, the facts before the Supreme Court were that the assessee-trust received donations in the aggregate sum of Rs. 2,57,376. It applied therefrom for its charitable purposes the aggregate sum of Rs. 1,70,369 leaving a balance of Rs. 87,010. On these facts, the court has taken the view that on the plain language of section 11(1)(a) of the Income-tax Act, 1961, the assessee was entitled to accumulate 25 per cent. of Rs. 2,57,376 and not merel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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