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TMI Blog2004 (6) TMI 584X X X X Extracts X X X X X X X X Extracts X X X X ..... on 11(2) under the Income-tax Act filed its return of income for assessment year 1996-97 declaring "NIL" income on 31-10-1996. On perusal of Form No. 10 enclosed along with the return as per Rule 17 of the Income-tax Rules, 1962, the assessee requested the Assessing Officer for the benefit of accumulation as per section 11(2) in respect of a sum of Rs. 11,47,134. The purpose for which accumulation of the aforesaid income had been requested by the assessee trust were indicated in the Form No. 10 as under: (i)Main objects for which trust is being established. (ii)Before expiry of six months commencing from the end of each previous year, the amount so accumulated or set apart has been/will be invested or deposited in any one or more of the f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and services Rs. 50,000 Establish and maintain libraries and information services to facilitate the study of different cultures Rs. 75,000 Construct and manage community halls, Jaoghars, Dharmashalas, poor houses, rest houses on no-profit no loss basis Rs. 7,50,000 Establish health centers for yogic exercised and organize medical services Rs. 1,50,000 Maintain, alter, improve or develop any building or works necessary or convenient for the purposes of the society Rs. 1,25,000 The Assessing Officer proceeded to reject the request for accumulation under section 11(2) on the ground that specific purposes of accumulation has not been intimated. Aggrieved by this, the assessee carried the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st the respective purpose mentioned by the assessee. This, in our opinion, meets with the requirement of section 11(2). The learned counsel for the assessee cited before us, the decision of Supreme Court in the case of CIT v. Nagpur Hotel Owners Association [2001] 247 ITR 2011 , wherein it has been held that the requirement of section 11(2) would be treated as met if the necessary information regarding the purposes of accumulation of income is given by the assessee trust before the completion of the assessment. The Court further held that any claim for giving benefit of section 11(2) on the basis of information supplied subsequent to the completion of the assessment would be liable to be rejected. The decision therefore clearly lays down th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aised the point on behalf of the revenue that the assessee has not filed proper authorization in the form of resolution of the Board of Trustees specifying the purposes for which trust income is being accumulated under section 11(2). This aspect has also been referred to by the CIT(A) in his impugned order. We feel that no specific requirement that a resolution of Board of Trustees should be filed along with the Form No. 10 has been laid down under section 11(2) of the Act and no such requirement can be read in to the section by implication. In the instant case, the revenue has not questioned the bona fides of the assessee in accumulating the trust income for the purposes specified in Assessee's letter dated 30-3-1999. There is no suggestio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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