TMI Blog2000 (12) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... essment proceedings, the Assessing Officer does not have the necessary information. question of excluding such income from assessment does not arise at all. As a matter of fact, this benefit of excluding this particular part of the income from the net of taxation arises from section 11 and is subjected to the conditions specified therein. Therefore, it is necessary that the assessing authority must have this information at the time he completes the assessment. In the case in hand it is evident from the records of the case that the respondent did not furnish the required information till after the assessments for the relevant years were completed. In the light of the above, we are of the opinion that the stand of the Revenue that the Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessing authority by the appellate authority holding that the finding of the Assessing Officer that the association was not duly registered as required under section 12A(a) of the Act, was incorrect. On remand, the assessing authority held that the object of the assessee was not charitable but was to carry on profit-making activities, hence, it was not entitled to exemption under section It of the Act. The said authority also held that the assessee had not applied for accumulation of its income for charitable purposes as required under section 11(2) of the Act within the time specified in rule 17 of the Income-tax Rules, 1962 (for short "the Rules"), hence, he assessed the total income of the association to tax under the Act. In appeal, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd of each previous year for issuing the notice as required under section 11(2) of the Act. It also held that the Act had not provided for such rule-making authority to fix such a period of limitation which meant that the Legislature did not impose a limitation for giving a written notice to the assessing authority, therefore, it held that the time fixed in para. 2 of Form No. 10 requiring the said intimation to be given within six months is beyond the delegated authority, hence the said prescription of limitation was illegal. In these appeals, the Revenue has raised the same two questions referred to the High Court before us also. Mr. M. L. Verma, learned senior counsel appearing for the Revenue contends that if the first question is ans ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for charitable or religious purposes, to the extent to which such income is applied to such purposes in India ; and, where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income so accumulated or set apart is not in excess of twenty-five per cent of the income from such property ; ... (2) (a) such person specifies, by notice in writing given to the Assessing Officer in the prescribed manner, the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years." It is abundantly clear from the wording of sub-section (2) of section 11 that it is mandatory for the per ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y time before the assessment proceedings. Further, any claim for giving the benefit of section 11 on the basis of information supplied subsequent to the completion of assessment would mean that the assessment order will have to be reopened. In our opinion, the Act does not contemplate such re-opening of the assessment. In the case in hand it is evident from the records of the case that the respondent did not furnish the required information till after the assessments for the relevant years were completed. In the light of the above, we are of the opinion that the stand of the Revenue that the High Court erred in answering the first question in favour of the assessee is correct, and we reverse that finding and answer the said question in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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