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TMI Blog2015 (12) TMI 350X X X X Extracts X X X X X X X X Extracts X X X X ..... t having all the information required. There is no dispute that it is mandate of sec.11 of the Act to specify the purpose and period for which accumulation is sought for and he assessee has not complied with the provisions of sec.11(5) of the Act. Considering the totality of facts and circumstances of the case, in our opinion, the orders of the lower authorities are justified in dismissing the appeal of the assessee. - Decided against assessee - ITA Nos. 2683 & 2684/Mds/2014 - - - Dated:- 23-9-2015 - Chandra Poojari, AM And Challa Nagendra Prasad, JM For the Appellant : Shri S Sridhar, Adv For the Respondent : Shri A B Koli, JCIT ORDER Per Chandra Poojari, Accountant Member These appeals by the assessee are direc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the AO, the assessee has applied only 71% of its income for charitable purpose and therefore, is not eligible for accumulation of 15%. Accordingly, the AO treated the amount of ₹ 10,43,587/- claimed as exempt as income of the assessee. 3.1 Further, the assessee claimed that an amount of ₹ 59,13,658/- has been set aside for specified purposes u/s.11(1) and claimed that there is no violation of any provisions. According to the AO, it is mandatory for the assessee to specify by notice in writing to the AO, the purpose for which the income is being accumulated or set apart and the period for which the same is to be accumulated or set apart. The intimation by way of filing of Form 10 before the due date has not been complied by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 47 ITR 201), wherein it was held as under : On-going through the above extract, we find that the Supreme Court observed that it was necessary the assessing authority must have the information under Form-10 at the time he completes the assessment and in its absence it is not possible for the assessing authority to give benefit of such exclusion. Furthermore, once the assessment is so completed it would be futile to find fault with the assessing authority for having included such income in the assessable income of the assessee. The Supreme Court held categorically that without the particulars of this income as given in Form-10, the assessing authority cannot entertain the claim of the assessee u/s.11 of the Act and, therefore, compliance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 11(2) [Where [eighty-five] per cent of the income referred to in clause (a) or clause (b) of sub-section (1) read with the Explanation to that sub-section is not applied, or is not deemed to have been applied, to charitable or religious purposes in India during the previous year but is accumulated or set apart either in whole or in part, for application to such purposes in India, such income so accumulated or set apart shall not be included in the total income of the previous year of the person in receipt of the income, provided the following conditions are complied with, namely:--] (a) such person specifies, by notice in writing given to the [Assessing] Officer in the prescribed manner, the purpose for which the income is being accum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... epend on the exact and precise purposes for which the accumulation is intended for the statutory period of ten years. The generating of the objects of the trust cannot take the place of specificity of the need for accumulation. 8. Further, it is pertinent to note that the assessee has not complied with the provisions of sec.11(5) of the Act. Considering the totality of facts and circumstances of the case, in our opinion, the orders of the lower authorities are justified in dismissing the appeal of the assessee. Accordingly, we are inclined to dismiss the appeals for the assessment years 2008- 09 and 2009-10. 9. In the result, the appeals of the assessee are dismissed. Order pronounced on the 23.9.2015. - - TaxTMI - TMITax - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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