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TMI Blog2022 (1) TMI 640X X X X Extracts X X X X X X X X Extracts X X X X ..... filed by assessee, it is stated that the Ld.CIT(A)-1, Mumbai had passed order dated 17.03.2020, and the same had been received by the assessee on 10.10.2020. The time limit for filing appeal before the ITAT expired on 09.12.2020 whereas the appeal was filed on 28.01.2021. In this regard the Ld.AR has made reference to the office order dated 30.03.2020 F.No.233/Ad (AT)2019-20 issued by Hon'ble President, ITAT extending the period of limitation in filing the appeals in all such proceedings whether condonable or not, with effect from 15th March, 2020 till further order/s. 3. The CIT(DR) has raised no objection in condoning the delay. Hence, the delay of 49 days in filing appeal is condoned in view of the office order dated 17.03.2020 issued ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO's action of denying exemption u/s 11 of the Income Tax Act, 1961 in respect of Rs. 1,95,00,000/- accumulated as per provisions of section 11(2) of the Act and thereby, making an addition of Rs. 1,95,00,000/-. 3. On the facts and the circumstances of the appellant's case and in law the Ld. CIT(A) erred in confirming AO's action of holding that the accumulation was not for the specified purpose and was not spent on the objects of the Trust. 4. On the facts and the circumstances of the appellant's case and in law the Ld. CIT(A) erred in confirming AO's action of holding that the appellant has violated the provisions of section 11(2) of the Income Tax Act, 1961." 7. The only grievance of the assessee as per the grounds raised are wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are charitable, some are not. Some of the objects are intended for the benefit the members of a particular sect, i.e. The Shewtamber Starakvasi Jain Sadhus/Sadhvis and since assessee has mixed objects, the purpose of accumulation ought to have been specified in concrete terms. The purpose, as per Resolution passed, is for spending on "objects of Trust by 31 March 2016". The findings of the CIT(A) are quoted below: accumulation is for purpose of has been shown, as for the reasons as reproduced below: "7.4.1 The above facts indicate that when the Form No.10 of the assessee trust mentions that the accumulated funds are to be spent towards the objects of the trust, there is no specifications or clarity and as can be seen from the above, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee has merely claimed that the money has been spent on general medical purposes by making unsegregated donations to various other trusts (and not on any other objects of the trust as mentioned in Form No. 10). 7.4. In view of the above discussion, it is held that the assessee has violated the provisions of section 11(2) of the Act and therefore the assessee is not entitled to claim accumulation of some of Rs. 1,95,00,000/-. Therefore, this claim of the assessee as made in ground of appeal no. 1 is dismissed." 10. Before us, Ld. AR submitted that merely because the specific purpose is not mentioned in the resolution, the same does not disentitle the assessee from claiming the benefit the accumulation u/s 11(2) of the Act especially whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the earlier years there is no justification in denying the benefit in the current assessment year on similar facts. The Ld.AR submitted that for maintaining consistency, the assessee has passed the resolution in similar manner which was accepted in the earlier years and thus applying the principle of consistency, the claim is allowable in the current year too. The Ld.AR also drew our attention to the fact that the accumulated amount was utilized in the financial year ending on 31.03.2016 and that it can be seen from the financials for the year ending 31.03.2016 that as per the income and expenditure account the amount was utilized for the purpose of medical relief, relief of poverty & education. 12. On the other hand, Ld. DR has vehement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 taxmann.com 122 (Gujarat) wherein, it was held that lack of declaration in Form No 10 regarding specific purpose for which funds were being accumulated by the assesse trust would not be fatal to the exemption claimed u/s 11(2) of the Act. The Hon'ble Supreme Court in CIT (Exemption) v. Bochasanwasi Shri Akshar Purshottam Public Charitable Trust [2019] 105 taxmann.com 97 has dismissed SLP filed by the department in the above case and has upheld the findings of the Hon'ble Gujarat High Court. Further in the case of DIT vs. Mitsui & Co. Environmental Trust [2008] 167 Taxman 43 (Delhi) it was held as under: "5. That the trust is a charitable trust is not in dispute because the Assessing Officer has recorded that he had considered the activi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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