TMI Blog2020 (11) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... he Act, however, the said term receipt of income is only in the context of the person who is in receipt and not in the context of income derived from the property held under the trust. The income derived from the property held under the trust remains the same for computing the benefits as provided u/s.11. Computation of the quantum of 15% of the income derived should be on the basis of the income as declared by the assessee, which is considered for all other purposes. A different meaning of income derived from property can be given for the purpose of calculating the relaxation of accumulation or set apart equivalent to 15% of such income. Hence, the adjustment made while processing the return of income is not in accordance with the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 15% of the income derived by the assessee u/s.11(1)(a) of the Income Tax Act [Act]. The return of income filed by the assessee was processed u/s.143(1) of the Act on 09-11-2014 by the Central Processing Centre (CPC), whereby an adjustment of ₹ 2,15,216/- was made. The said adjustment was made in the proceedings u/s.143(1) of the Act by re-computing the amount of 15% allowed u/s.11(1)(a) of the Act. The assessee has claimed the amount accumulated or set apart to the tune of ₹ 11,31,351/- u/s.11(1)(a) of the Act, which is computed on the gross receipts of ₹ 75,42,343/-. Against this amount of ₹ 11,31,351/-, the CPC has worked out a sum of ₹ 9,16,135/- as an amount allowable u/s.11(1)(a) of the Act, equivalent to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vant for computing the relaxation of 15% as provided u/s.11(1)(a) of the Act. He has pointed out that since the assessee has not received a sum of ₹ 14,34,775/- and exercised the option u/s.11(1) read with Explanation-I, therefore, the said amount which was set apart on the ground of non-receipt of the same during the previous year is required to be reduced from the total receipts for computation of 15% as provided u/s.11(1)(a) of the Act. He has relied upon the impugned order of the CIT(A) and submitted that the CIT(A) has rightly considered the total receipt for calculating 15% at ₹ 61,07,568/- instead of ₹ 75,42,343/-. 5. Having considered the rival submissions as well as the relevant material on record, it is noted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... )(a) of the Act, a different parameter cannot be applied. The Ld.DR has given much stress on the term receipt as appearing in Section 11(1) of the Act, however, the said term receipt of income is only in the context of the person who is in receipt and not in the context of income derived from the property held under the trust. Therefore, the income derived from the property held under the trust remains the same for computing the benefits as provided u/s.11 of the I.T.Act. Hence, the computation of the quantum of 15% of the income derived should be on the basis of the income as declared by the assessee, which is considered for all other purposes. A different meaning of income derived from property can be given for the purpose of calculat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
