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TMI Blog2023 (2) TMI 684X X X X Extracts X X X X X X X X Extracts X X X X ..... ce the assessee has already considered this amount by reducing the quantum of application of income for charitable purposes of the assessee during the year, the computation be reworked in accordance with law taking note of this fact. Computation of income for the year reflecting this fact was also produced before us. We direct the AO to recompute the income of the assessee in accordance with law, taking note of and after verifying the fact claimed by the assessee of having considered this unutilized amount of charitable income while computing its income for the year. - ITA No.161/RJT/2019 - - - Dated:- 19-10-2022 - SMT.ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER Assessee by : Shri Bakul Ganatr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Section 11(2) of the Act. 4. At the outset itself, ld.counsel for the assessee submitted that addition in the present case has been made on account of non utilization of income for charitable purposes in the stipulated period of five years ,which income was accumulated and set apart for the said purpose in the A.Y 2007-08, as per the provisions of section 11(2) of the Act. The ld.counsel for the assessee pointed out that in the Asst.Year 2007-08, the assessee had set apart an amount of Rs.6,30,000/- for utilization in the next five years for charitable purpose, and the same having been not so utilized, was added back to the income of the impugned year, in an intimation made under section 143(1) of the Act. He pointed out that the mat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s as per section 11(2) of the Act. 9. The facts of the case being that in A.Y 2007-08, the assessee had accumulated /set apart an amount of Rs.6,30,000/- to be utilized for stated purpose in five years. The same undisputedly has remained unutilized in the five year period thereafter. 10. The treatment of such unutilized amount of accumulated income is governed by section 11(3) of the Act ,which requires such unutilized amount to be treated as deemed income of the assessee in the year when the period of five years so granted for utilization expires or in the succeeding year. The relevant provisions of section 11(3) of the Act is reproduced hereunder: 11. (3) Any income referred to in sub-section (2) which- (a) (b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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