9911796707
TMI Blog1978 (7) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... und derived its income from property held for charitable or religious purpose to which s. 11 of the I.T. Act, 1961, as it stood at the relevant time applied. It was found that the contributions received by the assessee as aforesaid were in the nature of voluntary contributions from the Trust Fund which were accumulated in the hands of the assessee and, therefore, became liable to be taxed under s. 12(2) of the I.T. Act, 1961, as it stood at the relevant time. In the relevant assessment years, the ITO treated the amounts of the said contributions to the assessee as its income and giving relief for 25% of the total receipts or Rs. 10,000, whichever was higher, tax was assessed accordingly. The assessee, being aggrieved, preferred appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bunal has drawn up a statement of case and has referred the following question to this court for its opinion as a question of law arising out of its order: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the voluntary contributions of Rs. 12,000 each received by the assessee from Messrs. Thakurdas Sureka Charity Trust Fund in the assessment years 1962-63, 1963-64, 1964-65 and 1965-66, respectively, were to be treated as income of the assessee under section 12(2) of the Income-tax Act, 1961 ? " Mr. P. K. Pal, learned counsel for the assessee, contended at the hearing that the Tribunal erred in proceeding on the basis that the amounts received by the assessee were voluntary contrib ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the following conditions, the restriction specified in clause (a) or clause (b) of sub-section (1) as respects accumulation or setting apart shall not apply for the period during which the said conditions remain complied with (a) such persons have, by notice in writing given to the Income-tax Officer in the prescribed manner, specified 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 in any Government security as defined in clause (2) of section 2 of the Public Debt Act, 1944 (XVIII of 1944), or in any other security which may be approved by the Centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of that section and the provisions of that section shall apply accordingly." In view of the aforesaid sections and on the facts admitted and/or found by the Tribunal it appears to us that the amounts received by the assessee from the Trust Fund were voluntary contributions within the meaning of s. 12 and by reason of the provisions of sub-s. (2) thereof the same had to be deemed to be income derived from property in the hands of the assessee for the purposes of S.11. On a consideration of S.11 it appears to us that in order to claim exemption from tax it was necessary for the assessee to show that such income has been applied wholly for charitable or religious purposes and that the accumulation out of such income was not in excess of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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