TMI Blog1991 (7) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 income i under section 11(2)of the Income-tax Act, for all the objects for which the trust was created and not for any specific objects, was neither erroneous nor prejudicial to the interests of the Revenue?" The facts leading to this reference are that the assessee, a public charitable trust, was assessed by the Income-tax Officer for the assessment year 1984- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat section 11(2) contemplates only specific or concrete purposes and holding further that " it will be a mockery of the section if, in the application for permission, all the objects of the trust are listed out and the period also is mentioned as ten years which is the maximum permitted under law ", the Commissioner of Income-tax set aside the impugned order of the Income-tax Officer and directed him to redo the assessment " taking into account the correct position of facts and law as stated above ". Thereupon, the assessee moved the Tribunal which, on an examination of the scheme of the Act, held that since a plurality of charitable purposes is not ruled out under the scheme of the Act, no objection could possibly be taken to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contribute to the maintenance of hospitals, charitable dispensaries, maternity homes, children's clinics, family planning centres, welfare centres, schools, colleges and/or institutions for promotion of research and education in medical science including surgery; (iii) To maintain beds in hospitals and to make research grants for the promotion and advancement of medical science in India; (iv) To help needy people in marriage, funeral and cremation of the dead; (v) To open, found, establish, maintain and assist leper asylums or other institutions for the treatment of leprosy; (vi) To open, found, establish, assist and maintain schools, colleges and boarding houses; (vii) To open, found, establish or contribute to the maintenance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l the purposes does not make any difference and satisfies the requirement of sub-section (2) of section 11. We are unable to accept this contention having regard to the broad nature of the purpose being all the objects mentioned in the deed of trust. Doubtless, it is not necessary that the assessee has to mention only one specific object. There can be setting apart and accumulation of income for more objects than one but whatever the objects or purposes might be, the assessee must specify in the notice the concrete nature of the purposes for which the accumulation is being made. Plurality of the purposes for accumulation may not be precluded but it must depend on the exact and precise purposes for which the accumulation is intended for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purposes of the trust in the widest terms so as to embrace the entirety of the objects clause of the trust deed would render the requirement of specification of the purpose for accumulation in that sub-section redundant. The purposes to be specified cannot, under any circumstances, tread beyond the objects clause of the trust. 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. When sub section (2) of section 11 requires specification of the purpose, it does so having in mind a statement of some specific purpose or purposes out of the multiple purposes for which the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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