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TMI Blog2018 (10) TMI 995X X X X Extracts X X X X X X X X Extracts X X X X ..... se for which the income is being accumulated or set apart. In the present case, we are prepared to accept the Revenue's stand that the declaration made in Form 10 by the assessee was not sufficient to fulfill this requirement. However, as noted, during the course of assessment proceedings, AO called upon the assessee to explain the position in response to which, the assessee in detail pointed out background under which the board of trustees had met, considered the material and eventually passed a formal resolution setting apart the funds for the ongoing hospital projects of the Trust and for modernization of the existing hospitals. There was thus a clear statement made by the assessee setting out the purpose for which the income was being s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lieving that the assessee had not indicated the purpose for which the income was set apart which was one of the requirement of section 11 of the Act. He also referred to the declaration to be made by the assessee under Form 10 in support of such a claim in which also, according to him, there was no specification of the purpose. 5. The assessee appeared before the Assessing Officer and filed a detailed reply. The gist of the reply is that the assessee-Trust is engaged in providing medical facilities at various centers like Ahmedabad, Surat etc. At the time of setting apart of the funds, two hospital projects at Ahmedabad and Atladra were coming up and modern amenities were required to be provided in the existing hospitals. The board of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no specific object was mentioned. Therefore claim of the appellant was rejected. 6. In the regulation passed at the meeting of the trustees clearly indicated that ₹ 3.60 crore were required for the hospital project in respect of hospital run at several places and so accumulates ₹ 3.60 crore were to be utilized for the current and future project of this said hospitals by way of explanation and in support of its contention Ld. A.R. Also cited a decision in the case of CIT v. Hostel and Restaurant Association (2003) 261 ITR 190 whereas it has been held as under it is true that specification of certain purpose or purpose is needed for accumulation trust's income u/s. 11(2) of the act. At the same time, the purpose or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, that by itself would not mean that any inaccuracy or lack of full declaration in the prescribed format by itself would be fatal to the claimant. The prime requirement of this clause is of stating of the purpose for which the income is being accumulated or set apart. In the present case, we are prepared to accept the Revenue's stand that the declaration made in Form 10 by the assessee was not sufficient to fulfill this requirement. However, as noted, during the course of assessment proceedings, the Assessing Officer called upon the assessee to explain the position in response to which, the assessee in detail pointed out background under which the board of trustees had met, considered the material and eventually passed a formal r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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