9911796707
TMI Blog2016 (1) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... The orders of the authorities below in so far as they are against the appellant are opposed to law, equity, weight of evidence, probabilities, facts and circumstances of the case. (2) The learned CIT(A) is not justified in upholding, in principle, the action of the learned AO in computing the accumulation of income u/s 11(1)(a) of the Act, at 15% of the net income from property held under trust after deducting revenue expenditure incurred by the appellant as against a sum of Rs. 51,52,825/- claimed by the appellant on the basis of the gross income from property held under trust under the facts and in the circumstances of the appellant's case. (3) For the above and other grounds that may be urged at the time of hearing of the appeal, y ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount available in the hands of the trust (para VI) 44,30,789 VII. Amount accumulated u/s 11(2) (Form No.10 filed) 7,22,037 VIII. Balance taxable income Nil IX. Tax thereon Nil Tax deducted source Nil X. Balance payable refundable 4. From the above computation, it is clear that vide column No.6, the learned AO observed that only 15% of net surplus is allowed to be accumulation under the provision of sec. 11(1)(a) of the Income-tax Act. 5. The assessee society being aggrieved by this observation filed an appeal before the learned CIT(A), who vide impugned order dismissed the appeal by giving the following finding: "3.7 I find from the AO's treatment that the diff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case of M/s The Capuchin Friar Services Society to which one of us i.e Hon'ble JM is author of the order, wherein following the earlier decision of the Coordinate bench in the case of Jyothy Charitable Trust in ITA No.662/Bang/2015 held that for the purpose of recognizing 15% income to be accumulated only gross receipt of income to be considered. 8. On the other hand, the learned Sr. DR placed reliance on the orders of the lower authorities. 9. We have heard rival submission and perused the material on record. A perusal of the computation of total income done by the AO vide para 8 of the asst. order shows that there was net surplus of Rs. 51,52,825/- before the income being applied for charitable purpose. After applying the said income t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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