2007 (1) TMI 98

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....that the Assesses was not entitled to accumulate income for the objects of the Charitable Trust without specifying the purposes for which the income is accumulated?" 3 We are of the view that since the question can be answered at this stage  because we have heard arguments of learned counsel for both the parties, we   proceed to dispose of this appeal. 4 The Appellant is a charitable trust which has been set up for the following charitable purposes:- 1. for medical relief; 2. help to poor; and 3. educational purposes. 5  The Appellant accumulated a sum of Rs.11 lakhs and passed a resolution on  10th October, 1997 to the effect that the amount be utilized for the purposes of   the trust, t....

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....he facts and circumstances of the case, the Tribunal is justified   in holding that the accumulation of income by the Assesses under Section 11(2) of  the Income Tax Act, 1961 (hereinafter referred to as `the Act') for all objects  for which the trust was created and not for specific purpose was neither  prejudicial nor erroneous to the interests of the Revenue?"(emphasis given). 8 The contention of learned counsel for the Revenue in that case was that  the appellate authority had failed to appreciate that the Assesses did not  indicate in the prescribed form the specific purpose for which the income was  sought to be accumulated and, therefore, the statutory requirement had not been complied with ....

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....oses/objects stipulated in the memorandum of association, the assesses had  specified eight purposes and it was held that the assessee was entitled for exemption under Section 11 of the Act. 11 Learned counsel for the Revenue has contended that if the observations of this Court in Hotel and Restaurants Association are carefully read, then the purpose should be specified. We are of the view that given the question of law in Hotel and Restaurants Association, the conclusion of this Court was that the details of the purposes for which the income was accumulated need not be specified. For example, if the purpose of accumulation is educational, the assessee is not required to indicate or specify whether it is elementary education, primar....