TaxTMI 
TaxTMI 
2025 (4) TMI 1296
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....er of the Ld.CIT(A) is opposed to law on the facts and in the circumstances of the case, 2. The Ld.CIT(A) erred in holding that as various courts have held, the AO cannot deny such accumulation of income merely for the reason that purpose specified in Form No. 10 is vague and general in nature. 3. The Ld.CIT(A) failed to mention the specific case laws relevant to this case/applicable to this issue by holding that.AO cannot deny such accumulation of income merely for the reason that purpose specified in Form No. 10 is vague and general in nature. 4. The Ld.CIT(A) ignored the provisions of section 11(2) of the IT Act wherein its states that the purpose for which income is being accumulated or set aside to be mention....
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....r restored." 3. Brief facts of the case are that the assessee is a trust formed pursuant to the deed dated 29.11.1998. For AY 2018-19 the return of income was filed on 29,09.2018 declaring Nil income after claiming exemption u/s. 11 of the Act. The assessment was completed u/s. 143(3) of the Act vide order dated 07.04.2021 by disallowing the claim of accumulation u/s. 11(2) of the Act amounting to Rs. 17,38,70,153/-. The reason for denying the claim of accumulation u/s. 11(2) of the Act was that there is no specific reason mentioned in Form 10 how the amount accumulated going to be spent for. 4. Aggrieved by the order of assessment the assessee filed appeal before the first appellate authority. The CIT(A) allowed the appeal of the ass....
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....mily Trust (2000) 245 ITR 400. In other words, it is the case of the assessing authority that the purpose of accumulation is to be 'specific and cannot be general in nature'. The appellant rely upon the subsequent judgments rendered by various high courts. In the judgment of the Delhi High Court in CIT vs. Hotel and Restaurant Association, the very same issue as considered by the Calcutta High Court has come up for consideration "It is true that specification of certain purpose or purposes is needed for accumulations of the trust's income under Section 11(2) of the Act. At the same time the purpose or purposes to be specified cannot be beyond the objects of the trust. Plurality of the purposes for accumulation is n....
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....ct and allow benefit of accumulation as claimed by the appellant. The grounds of appeal are allowed." 5. Aggrieved by the order of the CIT(A) the Department has filed the present appeal before the Tribunal. 6. The learned Sr. DR, apart from strongly supporting from strongly supporting the order of the AO, had taken us through the judgement of the Hon'ble Gujarat High Court in the case of CIT (Exemption) vs. Bochasanwasi Shri Akshar Purshottam Public Charitable Trust [2018] 409 ITR 591 (Guj). It was contended by learned Sr. DR that in the said judgement relied by the CIT(A) it has been clearly specified in Form 10 the reasons for accumulation at u/s. 11(2) of the Act. (refer para 4 of the judgement). 7. The learned A.R. supporte....
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....laim of accumulation of income u/s. 11(2) of the Act is that the amount set aside for accumulation has not been specifically mentioned or categorised. We find from Form 10 that the assessee had enumerated the reasons for accumulation of income which is well within the objects of the assessee trust. The Hon'ble Delhi High Court in the case of CIT vs. Hotel & Restaurant Association [2003] 261 ITR 190 (Del), while considering identical issue has held as follows: - "7. We do not agree. It is true that specification of certain purpose or purposes is needed for accumulations of trust's income under section 11(2) of the Act. At the same time the purpose or purposes to be specified cannot be beyond the objects of the trust. Plurali....