2008 (4) TMI 523

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....tax Act, 1961, are against the orders of the Income-tax Appellate Tribunal upholding the respondent/assessee's claim for exemp-tion under section 11(2) of the Act for the assessment years 1995-96 and 1996-97. The assessee is a charitable institution formed with the object of imparting education in Vedas and Upanishads. In the course of assessment for the assessment years concerned, the Assessing O....

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....tion 11(2) is vague. He also took into account the contract the assessee has, with another company for of buildings, though for the purpose of the trust. If the projects have to be funded with the income accumulated, then it is not known whether the assessee will have any surplus fund to spend for the objects of the trust after meeting the huge project cost in the construction activity undertaken ....

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.... a routine basis and if it is done, the very purpose of the trust will be defeated. In fact, section 11(2) of the Act providing for carry over up to 75 per cent. is an exception and if it is followed from year to year, then the genuineness of the activities of the trust itself should be examined by the Assessing Officer. In any case, we feel that since the assessment per-tains to the years 1995-96....