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TMI Blog2025 (4) TMI 1296X X X X Extracts X X X X X X X X Extracts X X X X ..... and in the circumstances of the case, 2. The Ld.CIT(A) erred in holding that as various courts have held, the AO cannot deny such accumulation of income merely for the reason that purpose specified in Form No. 10 is vague and general in nature. 3. The Ld.CIT(A) failed to mention the specific case laws relevant to this case/applicable to this issue by holding that.AO cannot deny such accumulation of income merely for the reason that purpose specified in Form No. 10 is vague and general in nature. 4. The Ld.CIT(A) ignored the provisions of section 11(2) of the IT Act wherein its states that the purpose for which income is being accumulated or set aside to be mentioned specifically and directed the AO to delete the additions when the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the deed dated 29.11.1998. For AY 2018-19 the return of income was filed on 29,09.2018 declaring Nil income after claiming exemption u/s. 11 of the Act. The assessment was completed u/s. 143(3) of the Act vide order dated 07.04.2021 by disallowing the claim of accumulation u/s. 11(2) of the Act amounting to Rs. 17,38,70,153/-. The reason for denying the claim of accumulation u/s. 11(2) of the Act was that there is no specific reason mentioned in Form 10 how the amount accumulated going to be spent for. 4. Aggrieved by the order of assessment the assessee filed appeal before the first appellate authority. The CIT(A) allowed the appeal of the assessee. The relevant finding of the CIT(A) reads as follows:- "The dispute in the present appea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion is to be 'specific and cannot be general in nature'. The appellant rely upon the subsequent judgments rendered by various high courts. In the judgment of the Delhi High Court in CIT vs. Hotel and Restaurant Association, the very same issue as considered by the Calcutta High Court has come up for consideration "It is true that specification of certain purpose or purposes is needed for accumulations of the trust's income under Section 11(2) of the Act. At the same time the purpose or purposes to be specified cannot be beyond the objects of the trust. Plurality of the purposes for accumulation is not precluded but it depends on the precise purpose for which the accumulation is intended. In the present case, both the appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Department has filed the present appeal before the Tribunal. 6. The learned Sr. DR, apart from strongly supporting from strongly supporting the order of the AO, had taken us through the judgement of the Hon'ble Gujarat High Court in the case of CIT (Exemption) vs. Bochasanwasi Shri Akshar Purshottam Public Charitable Trust [2018] 409 ITR 591 (Guj). It was contended by learned Sr. DR that in the said judgement relied by the CIT(A) it has been clearly specified in Form 10 the reasons for accumulation at u/s. 11(2) of the Act. (refer para 4 of the judgement). 7. The learned A.R. supported the findings of the CIT(A) and reiterated the submission made before the authorities below. 8. We have heard the rival submissions and perused the m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated the reasons for accumulation of income which is well within the objects of the assessee trust. The Hon'ble Delhi High Court in the case of CIT vs. Hotel & Restaurant Association [2003] 261 ITR 190 (Del), while considering identical issue has held as follows: - "7. We do not agree. It is true that specification of certain purpose or purposes is needed for accumulations of trust's income under section 11(2) of the Act. At the same time the purpose or purposes to be specified cannot be beyond the objects of the trust. Plurality of the purposes for accumulation is not precluded but it depends on the precise purpose for which the accumulation is intended. In the present case, both the Appellate Authorities below have recorded a c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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