Accumulation of income for a charitable purpose is allowable when the specific purpose is ascertainable from trust objects and records.

Where an assessee seeks accumulation of income for a charitable purpose, a general description in Form No.10 does not automatically defeat the claim if the specific purpose is ascertainable from the trust's objects and supporting records; the governing legal principle requires the accumulation to be for a specific, monitorable purpose, but a bona fide inadvertent omission in a form is excused when documentary evidentiary support, resolutions and utilization details furnished to the assessing authority make the true purpose clear. Operatively, the accumulation for maintenance and development of an eco friendly crematorium was held allowable and the prior disallowance set aside.

---

---

Issues: Whether mentioning "charitable purpose" in Form No.10 without further specification is sufficient compliance with Section 11(2) of the Income-tax Act, 1961 to claim accumulation of income for the purpose of maintenance and development of an eco friendly crematorium.

Analysis: Section 11(2) permits accumulation of income for a specific purpose; courts require the purpose to be concrete and identifiable to enable monitoring and application of funds. However, where the declaration in Form No.10, though general, is supported by the trust's objects and the assessee furnishes relevant information and documentary evidence (including objects clause, governing body resolution and details of utilization) during assessment proceedings such that the Assessing Officer is aware of the real purpose and the information is not false, the technical omission of precise wording in Form No.10 does not defeat the claim. The facts show the assessee's objects expressly include promotion of an eco friendly crematorium, the assessee provided supporting documents and details to the Assessing Officer, and there was a bonafide inadvertent omission in Form No.10; therefore the claim falls within the principle that a vague description is not fatal when the true specific purpose is ascertainable from records and falls within the trust's objects.

Conclusion: The accumulation claimed under Section 11(2) of the Income-tax Act, 1961 is allowable; the Assessing Officer's and the CIT(A)'s disallowance is set aside and the grounds of appeal are allowed in favour of the assessee.

---