TaxTMI 
TaxTMI 
1997 (1) TMI 9
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.... "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in construing the amount of Rs. 42,243 as being part of the amount of Rs. 6,50,000 which the assessee had mentioned in Form No. 10 under rule 17 of the Income-tax Rules, 1962, as being accumulated or set apart under section 11(2) of the Income-tax Act, 1961? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal has not erred in holding that the accumulated income in respect of which the conditions under sub-section (2) of section 11 are satisfied will be entitled to exemption over and above 25 per cent. of the income which is allowed to be accumulated under sub-section (1) of that section without losing exe....
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....ction of Rs. 42,243 shown in item No. (3) on the ground that the assessee-trust had not exercised its option under the Explanation to section 11(1) of the Income-tax Act, 1961, in writing as prescribed in that provision. He, however, under the mistaken impression that this amount was also included in the sum of Rs. 4,66,307 shown against item No. (2), deducted the said amount therefrom erroneously. The total income was determined as Rs. 69,342 in this manner. On appeal, the Commissioner of Income-tax (Appeals) noticed the mistake referred to in the earlier paragraph, allowed the appeal to that extent, confirming the other findings of the Income-tax Officer. In the result, the total income was reduced to Rs. 27,099 from Rs. 69,342. Thereaft....
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.... cent. of income which was allowed to be accumulated under sub-section (1) of section 11 without losing exemption, following the decision of the Karnataka High Court in the case of Addl. CIT v. A. L. N. Rao Charitable Trust [1976] 103 ITR 44, 51. (iv) The option to be exercised under the Explanation to section 11(1) need not be in the form of a separate letter and that Rs. 25,099 along with Rs. 2,000 spent in the three succeeding months after the end of the previous year for charitable purposes should be considered as application of income within the meaning of the Explanation to section 11(1) of the Income-tax Act, 1961." We have heard learned junior standing counsel appearing for the Department as well as learned counsel Mr. P. P. S. Ja....