9911796707
TMI Blog2015 (12) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... only common ground in these appeals is with regard to disallowance of amount claimed as accumulation of Rs. 10,43,587/- & Rs. 5,37,333/- for the assessment years 2008-09 and 2009-10 respectively and amount claimed as set apart of Rs. 59,13,658/- & Rs. 30,44,888/- for the assessment years 2008-09 and 2009-10 respectively u/s.11(2) of the I.T. Act. 3. The facts as narrated for the assessment year 2008-09 are that the assessee is a trust registered u/s.12A of the Act with effect from 1.4.2007. In the return of income filed for the assessment year 2008-09, the assessee has claimed the income of Rs. 69,57,245/- as exempt. The assessee claimed Rs. 10,43,587/- as accumulation @ 15% and the remaining Rs. 59,13,658/- as accumulated or set apart fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing apart the amount, the period etc. are not mentioned and the columns in the form filed are left blank. Further, as per clause (b) of sec.11(2) of the Act, the money so accumulated is to be invested in the modes specified in sec.11(5) of the Act. But this was not done by the assessee. Being so, the deductions claimed by the assessee as accumulation being 15% and the balance as set apart are not allowable in this case. Accordingly, the AO denied the benefit in both the assessment years under consideration. Against this, the assessee went in appeal before the Commissioner of Income-tax(Appeals), who confirmed the order of the AO. Aggrieved, the assessee is in appeal before us. 4. The ld. AR relied on the judgment of the Delhi High Court in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iced that the Act did not contemplate such re-opening of the assessment." 5. On the other hand, the ld. DR relied on the orders of the lower authorities. 6. We have heard both the parties and perused the material on record. As seen from the above, it is necessary that the AO must have the information under Form-10 at the time of completion of the assessment and in its absence, it is not possible for the assessing authority to give benefit of such exclusion. We are completely in agreement with the above judgment. But in the present case, though the assessee filed Form-10 during the time of assessment, setting apart amount, the period etc. are not shown and the columns in the form to be filled are left blank. The contention of the ld. AR is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumulation is sought for. The above position was upheld by the Jurisdictional High Court in the case of CIT v. MCT Muthiah Chettiar Family Trust (245 ITR 400), wherein it was held as under: "The trust is allowed to accumulate its income for a maximum period of ten years. The condition is that the trust should specify in the prescribed form the purpose for which the income is accumulated or set apart. It is not enough for the trustees to repeat the objects of the trust, but they must specify a particular purpose for which the income is being accumulated." 7.1 Similar view was also expressed by the High Court of Calcutta in the case of DIT(E) Vs Singhania Charitable Trust (199 ITR 189)(Cal), wherein it was held as under: "Doubtless, it i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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