TaxTMI 
TaxTMI 
TaxTMI 
2024 (10) TMI 23
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....nt of the fact that the 'specific charitable purpose' has not been mentioned in Form No. 10, as filed to the department. 2. That the finding of the CIT(A) that the mentioning of 'charitable purpose' is not sufficient for accumulation of income u/s 11(2) beyond the previous year, is not based on correct facts and circumstances of the case and also the legal position on this issue. 3. That the CIT(A) has failed to follow the judgment of Hon'ble Apex Court in the case of CIT (Exemption) Vs Bochasanwasi Shri Akshar Purushottam Public Charitable Trust cited in (2019) 105 Taxmann.com 1997 (SC), wherein the Hon'ble Apex Court have confirmed the finding of the Hon'ble High Court that for the lack of declaration in Form No. 10, regarding 'specific purpose' by the assessee Trust is not fatal to exemption claimed u/s 11(2) of the Act and also failed to follow the various other judgments of difference High Court including the Hon'ble Punjab & Haryana High Court in the case of CIT Vs Market Committee Tohana reported in 201 Taxmann 235 (P&H) & Others. 4. That the Appellant craves leave to add or amend the grounds of appeal before the appeal is finall....
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....by natural calamities, disasters, distress, and in difficult circumstances through voluntary agencies and State Governments, in un-served and under-served areas including tribal and remote areas in pursuance of the National Charter for Children, and Children in difficult circumstances including children living in Child Care Institutions (CCIs). 4.1 The Fund is reaching out to the designated target population through Grants-in-Aid to voluntary agencies till 2016 and through Scholarships to children living in the CCIs. From 2017 onwards, the NCF has continued only scholarships for children living in the Child Care Institutions. 5. The appellant/assessee filed its Income Tax Return (hereinafter, the 'ITR') of AY 2016-17 and 2017-18 on 29.09.2016 and 07.11.2017 declaring income of Rs. 1,91,37,995/- Rs. 60,07,760/- respectively. These cases were picked up for scrutiny and consequential assessments were completed at income of Rs. 2,60,72,247/- and Rs. 1,91,37,995/- vide orders dated 27.12.2018 and 26.12.2019 passed under section 143(3) of the Act at income of Rs. 2,60,72,247/- and Rs. 2,63,04,986/- for the assessment year 2016-17 and 2017-18 respectively. In both the assessments, the A....
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....be a concrete one, an itemized purpose or a purpose instrumental or ancillary to the implementation of object or objects. (b) the specification of purpose as required by section 11(2) admits of no amount of In CIT Vs M Ct. Muthiah Chettiar Family trust 245 ITR 400 the Hon'ble Madras High Court has observed that only by mentioning the purpose specifically, it will be possible for the Assessing Officer to monitor the situation whether the trust has applied its accumulated income for the purposes mentioned in Form10. It is therefore necessary that the organization should specify its purposes and such purposes should have some individuality instead of being mere repetitions of the objects of the organization." [Emphasized by us] 5.1 Aggrieved with the assessment orders, the appellant/assessee preferred appeals before the Ld. CIT(A) who dismissed both the appeals. For the sake of appreciation of the facts, the relevant finding in para 5.7 and 5.8 of the appellate order of the AY 2016-17; is extracted as under: - "5.7. In this case, the appellant filed form 10 electronically on 21.11.2018 and assessment u/s 143(3) was completed on 27.12.2018. As per circular 7/2018, the Commis....
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...., the first reasoning on which the AO disallowed the accumulation under section 11(2) of the Act did not survive. The only one reason survived after first appeal is that the appellant/assessee has not categorically specified the charitable purpose for which the said funds, in both the AYs, have been set apart. 7. The Ld. Counsel argued that the finding of the Ld. CIT(A) was contrary to the decision of not only the Hon'ble Supreme Court but also of various Hon'ble and High Courts. To buttress the arguments/contentions, the Ld. Counsel placed reliance on the following decisions:- a). Bochasanwasi Shri Akshar Purshottam Public cable Trust [2019] 105 taxmann.com 97 (SC) b) Market Committee, Tohana [2011] 12 taxmann.com 252 (P&H) c) Ohio University Christ College [2018] 408 ITR 352 (Karnataka) d) NBIE Welfare Society[2015] 54 taxmann.com 196 (Delhi) e) Bharat Kalyan Pratisthan [2007] 160 Taxman 216 (Delhi) f) Gurudwara Godri Sahib Baba Farid Society [2023] 154 taxmann.com 503 (Chandigarh-Trib.) g) Rogi Kalyan Samiti [2017] 88 taxmann.com 344 (Chandigarh- Trib.) h) Arhatic Yoga Ashram Management Trust [2021] 126 taxmann.com 76 (Chennai-Trib) 8. The Ld. Counsel drew our ....
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....uch Trust is not being advised by the top available Professionals in day-to-day affairs and routine compliances. Therefore, we have to prefer substantial justice rather than technicality in deciding the issue. 11. We find the purpose for which the amount was claimed to be accumulated or set apart mentioned in the Form No. 10 of the AY 2016- 17 "To be applied to promote and support research scientists for the advancement of research and development in future" as specific and categorical and thus, we are inclined to interfere with the finding of the CIT(A) in this regard. Accordingly, we order so and allow the appeal of the AY 2016-17 with the direction to the AO to allow the consequential benefit under section 11(2) of the Act to the appellant/assessee. 12. As far as the appeal of the AY 2017-18 is concerned, we find force in the arguments of the Ld. Counsel that this case is covered by the decision of the Hon'ble Gujrat High Court in the case of Bochasanwasi Shri Akshar Purshottam Public cable Trust; against which the SLP was dismissed[2019] 105 taxmann.com 97 (SC). The relevant part of the decision of the Hon'ble Gujrat High Court in the case of Bochasanwasi Shri Akshar Purshott....