2000 (11) TMI 4

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..... - it is clear that a charitable/religious trust is entitled to accumulate 25% of its income derived from property held under trust -the donations the assessee received, in the sum of Rs. 2,57,376, would constitute its property and it is entitled to accumulate 25% thereout
Judge(s) : S. P. BHARUCHA. and MRS. RUMA PAL. Order BY THE COURT :--- The questions that were referred to the High Court .....

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..... favour of the assessee, the Revenue is in appeal by special leave. 2. The question that really requires consideration is whether, for the purpose of s. 11(1)(a) of the IT Act, 1961, the amount for the grant of exemption of twenty-five per cent should be the income of the trust or it should be its total income as determined for the purposes of assessment to income-tax. This question has to be ans .....

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..... of twenty-five per cent of the income from such property." 3. Having regard to the plain language of the above provisions it is clear that a charitable or religious trust is entitled to accumulate twenty-five per cent of its income derived from property held under trust. For the present purposes, the donations the assessee received, in the sum of Rs. 2,57,376, would constitute its property and it .....

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