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TMI Blog2012 (10) TMI 889X X X X Extracts X X X X X X X X Extracts X X X X ..... facts by not appreciating the facts that purpose for accumulating the income is not covered according to section 11(2) of the I.T. Act. 3. Appellant craves leave to amend, alter, add, or modify any ground or grounds of appeal either before or at the time of hearing of case." 2. The brief facts of the case are that the assessee Society is running educational institute in the name of Jamia Urdu, Medical Road, Aligarh. From a perusal of audit report in Form No.10B under section 12A(b) of the Income Tax AC, 1961 ('the Ac' hereinafter) and Form No.10 read with rule 17, the Assessing Officer noticed that the assessee has accumulated Rs. 29,33,907/- out of net surplus of Rs. 60,63,306/- under section 11(2) of the Act. The Assessing O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lso in my considered opinion in the light of authoritative decisions relied upon by the appellant the accumulation of Rs. 29,33,907 claimed by the appellant u/s 11(2) of the Act, cannot be denied. Keeping in view the totality of facts, arguments of learned A.R., evidences on records and the various authoritative decisions cited by the learned A.R. on the issue under appeal cumulatively I hold that the appellant is entitled for the benefit of accumulation of Rs. 29,33,907/- u/s 11(2) of the Act and accordingly I direct the A.O. to allow the benefit of accumulation of Rs. 29,33,907/- u/s 11(2) to the appellant and recompute the appellant's income accordingly." 3. We have heard the ld. Representatives of the parties. The assessee society cla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are's and website in which about 2 lacs will be incurred." 4. Section 11(1) provides subject to the provisions of section 60 to 63, the income which is derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India; and, where any such income is accumulated or set apart for application to such purposes in India, to the extent to which the income so accumulated or set apart is no in excess of 15% of the income from such property, shall not be included in the total income of the previous year of the person in respect of the income. Sub-section (a) within (2) of section 11 provides that for the purpose of accumulation of such person is specified by no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of accumulation of income listed all the charitable objects for which the assessee trust was created. Under that circumstances the Court held that the specific purpose as required by section 11(2) admits of no amount of vagueness about such purpose. In the case under consideration, it has been noticed that the assessee has accumulated income for the specific purpose and for which the funds have been used accordingly in subsequent years. As the facts noted by the CIT(A) in his order that the assessee has applied the accumulation of funds as specified which were in accordance with the object of the trust. The facts of the case of Madras High Court is identical to the facts of the case of Calcutta High Court. Therefore, that judgment is also d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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