TaxTMI 
TaxTMI 
2016 (5) TMI 65
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....d objectives in the Form 10, that while plurality of purpose was permitted but these purposes had to be specific, realistic and definite and that it was only by mentioning the object specifically would the Assessing Officer be enabled to monitor its utilisation. To come to the aforesaid conclusion, he relied on few case law. The Assessing Officer finally held that in view of the failure of the assessee to furnish specific purpose of accumulation in the Form 10, brought the sum of Rs. 85,00,000 accumulated by the assessee to tax. 3. Aggrieved by the order of the Assessing Officer, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). 4. In the course of the appellate proceedings, the assessee submitted that the Assessing Officer had failed to interpret the judicial decisions cited by him that in the case of the Trustees of Singhania Charitable Trust, it was clearly held that the Legislature would not have thought of the need for specification of the purpose if it did not have in mind the particulars of purpose, that the expenditure out of the accumulated funds had been totally within the objects of the assessee, that this was clear from the data availab....
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.... a self-contained document duly setting down the full details of the purposes for which the funds are meant to be utilised. Filing of Form 10 in the cavalier fashion, as done by the appellant, defeats the purpose of filing it since the Assessing Officer cannot then be aware of all that may be recorded in the resolutions but not revealed in the Form, except when the Assessing Officer goes probing it specifically. Had it been the intention of the statute to make the information available to the Assessing Officer only when asked for, there would have been no need to provide for the filing of Form 10 at all." 6. Still aggrieved, the assessee is in appeal before us raising the following grounds of appeal : "1. The order of the learned Commissioner of Income-tax (Appeals) is contrary to the facts and also the law applicable to the facts of the case. 2. The learned Commissioner of Income-tax (Appeals) is not justified in sustaining the addition of Rs. 85,00,000 made by the Assessing Officer towards denial of exemption under section 11(2) in respect of amount accumulated on the ground that the purposes mentioned in Form 10 are general and not specific. 3. Without prejudice to the ab....
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.... resolution passed on April 9, 2012 23,00,000 II Utilisation : 1,97,36,466 1. On revenue account 2,33,97,041 2. On capital account 19,57,915 2,53,54,956 Utilisation 2,53,54,956 Less : Amount set aside under section 11(2) of the Income-tax Act as per resolution passed on April 11, 2010 85,00,000 1,68,54,956 Net surplus 28,81,510 Refund due 66,375 9. The learned authorised representative also relied on the decision of the hon'ble Delhi High Court in the case of DIT (Exemption) v. NBIE Welfare Society [2015] 370 ITR 490 (Delhi). 10. The learned authorised representative submitted that the assessment order of the assessment year 2012-13, was accepted by the Department without any adverse observation and, therefore, it is clear that the accumulation was applied to carry out the objects of the trust since the Assessing Officer has passed the 143(3) order. Hence, the assessee has utilised the whole accumulation set apart in the assessment year 2011-12. There is no dispute that the application of the accumulation was only for the carrying o....
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.... section 143(3) was passed in the assessment year 2012-13. It is very clear that the assessee has accumulated funds in the assessment year 2011-12 and applied the same for the objects of the trust in the immediately following assessment year 2012-13. The provisions of section 11(2) read as under : "11.(2) Where eighty-five per cent. of the income referred to in clause (a) or clause (b) of sub-section (1) read with the Explanation to that sub-section is not applied, or is not deemed to have been applied, to charitable or religious purposes in India during the previous year but is accumulated or set apart, either in whole or in part, for application to such purposes in India, such income so accumulated or set apart shall not be included in the total income of the previous year of the person in receipt of the income, provided the following conditions are complied with, namely :- (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 ; (b) the money so acc....
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....fied and stated that the money in question would only be used for the purpose of making payments to the members or their legal representatives in case of their death, retirement or permanent disability. The Tribunal in the impugned order has also referred to the scheme floated by the respondent assessee under which the employees who were desirous of becoming members had to deposit Rs. 10 as admission fees and thereafter pay Rs. 25 per month for a period of 25 years. The scheme devised provided : 'Present scheme Membership : Membership of the society shall be open to the permanent employees of New Bank of India. Any employee desirous of becoming member may apply on the prescribed form on payment of Rs. 10 as admission fee, duly recommended by any of the office bearer or managing committee member of the society employees appointed on part-time basis and one-third or two-third salary are not eligible for membership. Subscription : Under the present scheme, every member shall subscribe a sum of Rs. 25 per month for a period of 25 years. Benefits : (a) in case of death : (i) Members in the age group of below 50 years (as on 31-7-85) will be entitled to the following benefi....