AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (3) TMI 526
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....THE INCOME TAX ACT, 1961, AND REJECTING FORM NO.10 FILED ALONG WITH RETURN OF INCOME [a] The Commissioner of Income Tax (Appeals) erred in fact and in law in rejecting Form No.10 filed by the appellant Trust and thereby denying accumulation of 770,37,775/- under Section 11(2) of the Income Tax Act, 1961. [b] The objects of the Trust having been accepted as charitable, the appellant ought not have been subjected to tax on the sum of 770,37,775/- on a technical ground; 2. GENERAL: The appellant Trust craves leave to add to, alter and amend the grounds of appeal on or before the date of hearing." 2. Brief facts of the case are as under:- Assessee filed its Return of Income for the AY.2017-18 on 02.09.2....
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.... of Rs. 70,37,775/- Aggrieved by the order of Ld.AO, assessee preferred appeal before Ld.CIT(A). 3. Ld.CIT(A) after considering various submissions of assessee observed and held as under:- "6(b). The appellant had raised grounds against the disallowance of accumulated income contending that the trust's objects are charitable in nature and that the AO failed to appreciate that the accumulation was for maintenance & development of the eco-friendly crematorium. It was submitted that the omission of specific words in Form 10 was a technical lapse, as the governing body had passed a resolution and the expenditure could not have been for any purpose other than the charitable objects. The appellant relied on judicial decisions t....
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...., assessee is in appeal before this Tribunal. 4. Ld.AR submitted that assessee had during the assessment proceedings furnished its memorandum articles and association and also the object clause that reads as under:- 2. Aims and Objects: a. To create and spread the spirit and the feelings of Brotherhood, Unity, Solidarity, Co-operation, Harmony, Integrity amongst the Senior Citizens living in Santacruz (Paschim) and by extending the co-operation amongst themselves to strive to maintain and achieve advancement in social, cultural, economical and health field. b. to promote eco-friendly gas cum electric crematorium c. ******* d. To run home for aged e. To promote religious activities, pi....
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....t activity that was carried out by assessee and the entire donation that was received were exclusively used for this purpose alone. 4.3. Ld.AR submitted that, Ld.AO rejected the accumulation on the ground that Form 10 did not specify the exact object for which the deduction was claimed. Ld.AR submitted that, non-mentioning of the specific purpose for which funds were being accumulated by the Trust would not be fatal to the exemption claimed u/s. 11(2) of the Act, as has been held by in various decisions of Hon'ble High Courts as well as Co-ordinate Benches of this Tribunal. She placed reliance on following decisions in support of this submission:- • Hon'ble Delhi High Court in the case of Bharat Krishak Samaj vs. Deputy Dire....
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....n the observations lf Ld.CIT(A) reproduced supra. We have perused the submissions advance by both sides in light of the records placed before us. 5. Admittedly, there is no dispute in respect of the amount that has been accumulated by assessee u/s. 11(2) of the Act. The only reason to deny the claim is that in Form10, assessee did not specifically mention the purpose for which the accumulation of funds was made. Instead assessee mentioned it as a general purpose of "charitable in nature". Undoubtedly, the purpose for which income is being accumulated or set apparat is one of the requirement which must be satisfied by assessee before availing the benefit u/s. 11(2) of the Act. However, that by itself would not mean any inaccuracy or la....