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TMI Blog2014 (12) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... e paid/given to the employees of New Bank of India in the eventualities and it was in this context, the words “further utilization” had been mentioned - assessee was to provide financial assistance to the members in case of death, retirement and permanent disability - This was the sole and only purpose for which funds could be utilized - the description “further utilization” was neither vague nor unspecific. During the course of assessment proceeding, the assessee has clarified and stated that the money would only be used for the purpose of making payments to the members or their legal representatives in case of their death, retirement or permanent disability - The Tribunal rightly referred to the scheme floated by the assessee under whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that respondent assessee had accumulated ₹ 27,54,839/- for the description/purpose further utilization . The said purpose/description, it was observed was not a specific one, accordingly, the respondent assessee was asked to explain why the accumulation under Section 11(2) of the Act should not be disallowed. Respondent assessee vide its letter dated 22.02.1999 submitted their explanation that the accumulation was done for the aims and objectives of the society. The assessing officer, after going through the reply of the respondent assessee, held that the explanation of assessee was vague and the purpose further utilization cannot be treated as accumulation for specific purpose. He observed that the Form No. 10, filed by respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the objectives of the society, it was observed that respondent-assessee was to provide financial assistance to the members in case of death, retirement and permanent disability. This was the sole and only purpose for which funds could be utilized. It was held that the description further utilization was neither vague nor unspecific. 5. The Tribunal distinguished the decision of the Calcutta High Court in Director of Income Tax (Exemption) v. Trustees of Singhania Charitable Trust (1993) 199 ITR 819 (Cal) on the ground that in the said case, the charitable trust had as many as 18 objectives and there was no specific objective for which accumulation had been sought. Further, in this case, the objectives of the respondent society were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r accumulation is not precluded but it depends on the precise purpose for which the accumulation is intended. In the present case, both the appellate authorities below have recorded a concurrent finding that the income was sought to be accumulated by the assessed to achieve the object for which the assessed was incorporated. It is not the case of the Revenue that any of the objects of the asses-see company were not for charitable purpose. The aforenoted finding by the Tribunal is essentially a finding of fact giving rise to no question of law . 7. The decision in Hotel and Restaurant Association (supra) was referred to in another decision of the Delhi High Court in Bharat Kalyan Pratishthan v. Director of Income Tax (Exemption) (2008) 29 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejected by observing that the assessee had placed a copy of the annual report in which he has specified the items for which the money was accumulated. It was accordingly observed:- 9 A perusal of the annual report as well as the overview of these projects clearly shows that the projects were in consonance with the objectives sought to be achieved by the assessed, which were for the benefit of women and adolescent girls particularly in the slums or in a community which was not particularly well off. On going through the objects of the society, it is clear that the assessed sought to accumulate funds for a charitable purpose. Quite clearly, the Tribunal was correct in its conclusion that the decision of this Court would apply to the fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ary are not eligible for membership. Subscription : Under the present scheme, every member shall subscribe a sum of ₹ 25/- per month for a period of 25 years. Benefits: (a) in case of death : (i) Members in the age group of below 50 years (as on 31-7-85) will be entitled to the following benefits:- (a) A sum of ₹ 500/- p.m. shall be paid to the nominee of the deceased member for a period of 15 years. (b) Lump sum additional payment of ₹ 15,000/- shall be made to the nominee of the deceased member in addition in the benefit referred above if the member dies during the period of service in the bank. (ii) Members in the age group of above 50 years (as on 31-07-1985) will be entitled to the following benefits ..... X X X X Extracts X X X X X X X X Extracts X X X X
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