TaxTMI 
TaxTMI 
2020 (3) TMI 794
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....aising the purported questions of law arising from the said order. The appeals were admitted by the Coordinate Bench of this Court on 13.04.2016 on the following substantial questions of law. "(1) Whether the Appellate Tribunal is correct in law in their action to reject and to sustain the denial of the tax exemption claimed in terms of Section 11 of the Act consequent to the non acceptance of the plea for accumulation of income as per Section 11(2) of the Act read with Form No.10 on presumption of wrong facts establishing perversity in such findings recorded in relation thereto? (2) Whether the Appellate Tribunal is correct in not considering the power vested with the First Appellate Authority for entertaining the plea fo....
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....id not comply with the requirements of Sec.11(2) of the Act, which reads as follows: "11(2) [Where [eighty five] per cent of the income referred to in clause (a) 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 [Assessin....
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.... which accumulation is being made. Plurality of the purposes for accumulation may not be precluded but it must depend on the exact and precise purposes for which the accumulation is intended for the statutory period of ten years. The generating of the objects of the trust cannot take the place of specificity of the need for accumulation." 8. Further, it is pertinent to note that the assessee has not complied with the provisions of Sec.11(5) of the Act. Considering the totality of facts and circumstances of the case, in our opinion, the orders of the lower authorities are justified in dismissing the appeal of the assessee. Accordingly, we are inclined to dismiss the appeals for the assessment years 2008-09 and 2009-10." ....
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....d Tribunal contained all the details and evidence of such accumulation set apart by the Assessee Trust for the purpose of construction of building etc., in terms of the provisions of Section 11 permitted by law. We find from paragraph 6 of the learned Tribunal's order that, though the learned Tribunal has referred to the said Resolution dated 01.09.2008 passed by the Assessee Trust, without finding it to be defective, they have not given any benefit of the same to the Assessee Trust. Whether the said surplus fund has been really spent by the Assessee Trust for such construction or not for charitable purposes of the Trust contained in its Trust Deed or not might be a subsequent fact, which may be relevant for the Tribunal to consider, co....