TaxTMI 
TaxTMI 
2009 (6) TMI 694
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....ur view, do not survive for adjudication. In the remaining two grounds, the crux of the issue is that- (i)the CIT(A) had not appreciated that the assessee had spent only Rs. 7,527 out of gross receipt of Rs. 32,47,909 and, thus, had not done any charitable activity during the year; he had not appreciated the fact that the purposes mentioned in Form No. 10 for accumulation of surplus amount were nothing but reproduction of the objects of the trust deed dated 21-3-2003 and were not specific. 3. In the meanwhile, the revenue vide its petition dated 31-12-2008 has submitted as under : "In the above case, the order of the CIT(A) has been received in this office on 21st Feb., 2008. Accordingly, the appeal before the Tribunal should ha....
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.... any charitable activity during the year and the claim of accumulation under section 11(2) without any specific purpose cannot be allowed. Placing reliance on the case of DIT (Exemption) v. Trustees of Singhania Charitable Trust [1993] 199 ITR 819 (Cal.), the Assessing Officer had rejected the claim for exemption under section 11 and the donation received was treated as income from 'other sources' and brought to tax. 5. Aggrieved, the assessee trust had approached the learned CIT(A) with a plea that the case laws in the cases of CIT v. Hotel & Restaurant Association [2003] 261 ITR 190 (Delhi) and DIT (Exemption) v. Daulat Ram Education Society [2005] 278 ITR 260 (Delhi) which are squarely applicable to the facts of the assessee's case. ....
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....d dissented from the decisions in the cases of CIT v. M.CT. Muthiah Chettiar Family Trust and Trustees of Singhania Charitable Trust's case (supra), the learned CIT(A) observed that the assessee trust is entitled to accumulation of income under section 11(2) of the Act. 6. Agitated, the revenue has come up with the present appeal with a strong view that the purposes mentioned in Form No. 10 for accumulation of surplus amount were nothing but reproduction of some of the objects of the trust deed and were not specific. It was the case of the revenue that the Hon'ble High Court of Calcutta in the case referred supra had upheld that if the reasons for accumulation were not specific, this can be rejected. During the hearing, the learned Depar....
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....in to spot needy students for advancement of education and this exercise was going on from 2004; u It is an admitted fact the objects of the trust were not for profit and its income was neither diverted nor misused for any extraneous purposes; u With regard to the finding of the Calcutta High Court reported in Trustees of Singhania Charitable Trust's case (supra ) which was relied by the Revenue, it was countered thus- -In that case, the High Court also refers to a trust with 16 objects seeking permission for accumulation relied on the entire objects enumerated in the trust deed. In such a situation, the Court held that in Form No. 10, the object has not been specific. In the present assessee's case, out of 14 objects, only three o....
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....nvironmental Trust, the Hon'ble High Court of Delhi, has held that the purpose or purposes to be specified cannot be beyond the objects of the trust. Plurality of purposes for accumulation is (sic-not) precluded. In other words, it need not necessarily be specifically stated for which purpose the accumulation is sought; (ii)in the case of Bharat Kalyan Pratisthan case (supra) the Hon'ble Court has further held that it was not required for the assessee to be more specific with regard to the utilization of the funds. The Hon'ble Court had dissented from the decision of Madras High Court M.C.T. Muthiah Chettiar Family Trust case (supra) and the Calcutta High Court decision in the case of Trustees of Singhania Charitable Trust case (supra) o....