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TMI Blog2020 (11) TMI 219X X X X Extracts X X X X X X X X Extracts X X X X ..... rming the "Amount accumulated or set apart/finally set apart for application to charitable or religious purpose to the extent it does not exceed 15 percent" at Rs. 9,16,315/- as against Rs. 11,31,351/-. 3. Because the CIT(A) has erred in law and on facts in confirming the deduction of Rs. 14,34,775/- from total receipts to calculate 15% which could be accumulated or set apart. 4. Because CIT(A) has erred in law and on facts in not deciding Ground No.3 before him. 5. Because the Order appealed against is contrary to law, facts and principles of natural justice". 2. The only issue arises in this appeal of assessee is regarding adjustment of Rs. 2,15,216/- was made while processing the return of income on account of re-computation o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s.11(1)(a) of the Act being 15% of the income of the trust, which is deemed as applied for chartable purpose. He has further submitted that while computing such amount of accumulation, not exceeding 15% only, the income derived by the assessee-trust has to be taken into account and not the actual receipt of income during the year under consideration. Therefore, the adjustment made while processing the return of income is unjustified and liable to be deleted. 4. On the other hand, Ld.DR has submitted that the provisions of Section 11(1) of the Act stipulates that certain income shall not be included in the total income of the previous year of the person in receipt of income and therefore the receipt of income during the year is relevant for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lanation-I to Section 11(1) of the Act, the trust is further allowed to defer the application of income which is even falling short of 85% of the income derived from the year if the assessee has exercised an option before the date of filing of return of income u/s.139(1) of the Act. In the case on hand, the assessee has duly exercised the said option which is also accepted by the department and the amount which was set apart as per Explanation-I was reduced from the income derived from property held under trust. It is pertinent to note that once the income of trust is considered as the income received as well as accrued, then, at the time of allowing the relaxation of application of the said income u/s.11(1)(a) of the Act, a different param ..... X X X X Extracts X X X X X X X X Extracts X X X X
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