2018 (10) TMI 995

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.... following questions for our consideration: "A. Whether on the facts and circumstances of the case and in law, the Tribunal was justified in interpreting the provisions of section 11(2) of the Act and holding that it is not mandatory to specify the object/purpose in Form No.10 for claiming accumulation u/s. 11(2) of the Act? B. Whether on the facts and circumstances of the case and in law, the Appellate Tribunal was justified in allowing the claim of accumulation of Rs. 3,60,00,000/- u/s. 11(2) of the Act?" 3. Both questions are arising out of same issue. Such issue arises in following background: 4. Respondent-assessee is a Public Charitable Trust. For the assessment year 2008-09, the assessee had filed the return o....

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..... 6. In such background, the assessee argued that requirements of section 11D were sufficiently met with. The Assessing Officer was of the opinion that there was no such specification in the declaration in Form 10. Even otherwise the resolution of the board of trustees also contained any such specification. 7. In appeal CIT(A) confirmed the view of the Assessing Officer upon which, assessee filed further appeal. Tribunal, by the impugned judgement allowed the appeal making following observations: "5. We have gone through the record and relevant order, The appellant is a Public Charitable Trust and engaged in providing medical relief at various centers. During the course of re-assessment proceedings Assessing Officer purpose t....

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....ose." 8. Section 11(2) of the Act provides that eighty five percent of the income which is not utilized by the Trust for charitable or religious purposes would not be included in the total income of the previous year of receipt of the income provided the conditions laid down in clause (a) to (c) contained therein are satisfied. Clause (a) in particular, which is applicable, provides that such person furnishes the statement in the prescribed form and in prescribed manner to the Assessing Officer staying 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 five years. Undoubtedly therefore, the statement of purpose for which th....