2021 (2) TMI 414

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....nt year 1. The CIT(A) has grossly erred in confirming the unspent amount of last year's accumulation of Rs. 28,47,860 which was brought to tax in the current year that is assessment year 2012-13. 2. The CIT(A) came to the wrong conclusion and failed to appreciate that the accumulation had to be utilized within a span of 5 years and that the appellant had correctly utilized the same within the statutory period as per the law of accumulation u/s 11 read with Form No.10. B. Dividend Exempt 1. On the facts and circumstances and in law the CIT(A) grossly erred in rejecting the claim of the appellant that dividend income of Rs. 1,72,169 is exempt from tax. 2. The issue of exemption of dividend income is squarely covered by various decis....

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.... Lacs. Accordingly, this amount was brought to tax and an assessment was framed determining total income at Rs. 28.47 Lacs. The stand of Ld. AO, upon confirmation by Ld. CIT(A), is under challenge before us. 4. So far as the issue of dividend is concerned, we find that this issue is squarely covered in assessee's favor by the decision of this Tribunal in Jamshedji Tata Trust V/s Jt.DIT (E) (44 Taxmann.com 447) wherein coordinate bench drawing analogy from the decision of Hon'ble Delhi High Court in CIT V/s Divine Light Mission (278 ITR 659) held that dividend income being exempt u/s 10(34) could not be brought to tax by applying the provisions of Sec. 11 to 13 of the Act. We also note that amendment to Sec.11 by way of insertion of clause....

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.... fact of the case, we find that the assessee had filed Form No.10 for AY 2010-11 wherein an amount of Rs. 410.84 Lacs has been set-apart for subsequent utilization up-to previous year 2014-15. The same is also evident from assessment order u/s 143(3) dated 27/12/2012. The amount of Rs. 410.84 Lacs has been spread by assessee equally over 5 years in the computation of income. However, if the said amount of Rs. 82.16 Lacs is excluded from Ld. AO's computations, the assessee was required to spend an amount of Rs. 160.48 Lacs (Rs. 91.48 Lacs plus Rs. 68 Lacs) during the year. Out of the same, The assessee has already applied the amount of Rs. 103.43 Lacs during the year towards the objects of the trust and the balance amount has been set aside....