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TMI Blog2015 (12) TMI 1499X X X X Extracts X X X X X X X X Extracts X X X X ..... e accumulation is being done. The reason for the Assessing Officer's refusal to accept the subsequent letter of the assessee giving specific purpose of accumulation is that the assessee has not filed the resolution of the society for the specific purpose mentioned in the letter. Thus particularly taking into consideration the assessee's contention that the funds set apart have been utilised for the purpose mentioned by the assessee in its letter filed before the Assessing Officer during the assessment proceedings, I am of the opinion that the assessee is eligible for accumulating the excess of income over the expenditure for the relevant assessment year. - Decided in favour of assessee - I. T. A. No. 1014 /Hyd/ 2015 (assessment year 200 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee society has been established and managed by a Minority Community for the benefit of Roman Catholic Christians and all persons . . . and since the assessee has not filed any extract of the minutes/book or resolution passed by the trustees of the society in support of the purpose mentioned, i.e., establishment of schools/hospitals etc., the explanation dated December 22, 2010 was treated as invalid. He accordingly brought the excess of income expenditure of ₹ 10,46,695 as per the income and expenditure statement to tax. Aggrieved, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals) who confirmed the order of the Assessing Officer as far as the disallowance of the accumulation of income is concerned ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e very same purpose in the subsequent years and therefore, the disallowance is not called for. The learned Departmental representative, on the other hand, supported the orders of the authorities below. 4. Having regard to the rival contentions and the material on record, I find that the assessee is a charitable trust and has been registered under section12AA of the Act. During the relevant financial year, the assessee has excess of income over expenditure and has sought to set apart the said excess for the purposes of objects of the trust. Though in Form 10, the assessee has not mentioned specific purpose for which the accumulation is being done, we find that during the course of the assessment proceedings, the assessee has stated the sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 Assess ing Officer in the prescribed manner, the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, which shall in no case exceed ten years ; (b) the money so accumulated or set apart is invested or deposited in the forms or modes s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the Income-tax Officer allowed the exemption under section 11 of the Act by relying on the notice given by the assessee under section 11(2) of the Act. The Commissioner of Income-tax, by invoking the powers vested in him under section 263 of the Act called for and examined the assessment records of the assessee. After notice to the assessee and response, he set aside the order of assessment and ordered for de novo enquiry. The assessee preferred an appeal to the Tribunal. The Tribunal held that since a plurality of charitable purposes is not ruled out under the scheme of the Act, no objection could possibly be taken to the assessee's listing out all the objects of the trust in Form 10. The matter was taken by the Revenue to the High C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same time the purpose or purposes to be specified cannot be beyond the objects of the trust. Plurality of the purposes for 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 assessee to achieve, the object for which the assessee was incorporated. It is not the case of the Revenue that any of the objects of the assessee-company were not for charitable purpose. The aforementioned finding by the Tribunal is essentially a finding of fact giving rise to no question of law'. 5. Since the facts and circumstances before me are also similar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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