TaxTMI 
TaxTMI 
2016 (5) TMI 65
X X X X Extracts X X X X
X X X X Extracts X X X X
.... activity which is not covered by its aims and 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 as....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er in administering the provisions of the Act smoothly. Form 10 is, there fore, 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 t....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s 1,92,15,064 2. Bank interest 10,65,946 3. Other income 17,55,456 2,20,36,466 Gross receipts 2,20,36,466 Less : Amount set aside under section 11(2) of the Income-tax Act, 1961, as per 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 o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ar. It is evident from the return of income filed by the learned authorised representative as above. The accumulated funds of the assessment year 2009-10 are applied in the assessment year 2010-11. Similarly, accumulated sum of Rs. 85,00,000 in the assessment year 2011- 12 are applied in the assessment year 2012-13. This was verified and assessment order under 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, pro....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er (page 495) : "9. In the present case, the Assessing Officer himself had noted in the assessment order that the aim and objective of the assessee was to work for the welfare of the employees of New Bank of India. This undoubtedly was the purpose and objective of the society. Therefore, during the course of the assessment proceedings as is apparent from the appellate proceedings, the assessee has clarified 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 ....