Accumulated Funds u/s. 11(2) made for two specific objects, can Trust utilize one specific object funds u/s. 11(2), towards another specific object as per charitable purpose

[PRIYAM KHAMBHATA]

Respected Sir,

`A' -Charitable Trust has made accumulation u/s.11(2) for Rs.1000000 towards Building Funds and Rs.500000 towards Laboratory Funds in AY 2022-23, Subsequently, during the FY 2025-26 relevant to AY 2026-27, `A' - Charitable Trust would plan to incur Building Renovation Expenditure about Rs.1250000. In this connection, can `A - Charitable Trust utilize the excess Rs.250000 towards building renovation expenditure, out of Laboratory Funds of Rs.500000.

In view of the above scenario, what would be the action taken by `A' - Charitable Trust, before utilization of Rs.250000 towards building renovation expenditure, out of the accumulated funds of Laboratory Funds - Rs.500000.

Please guide me

AI Summary

Charitable Trust Seeks to Redirect Laboratory Funds for Building Renovation Under Section 11(2) Compliance A charitable trust accumulated funds under Section 11(2) for specific purposes: building funds and laboratory funds. The trust seeks to use excess laboratory funds for building renovation. The key question is whether such reallocation is permissible within the charitable purpose framework, requiring careful evaluation of the trust's original intent and statutory compliance.