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www.taxpublishers.in Income Tax Act, 1961, Section 11(2) Charitable trust--*Exemption under section 11--Form 10 filed after due date of filing of return but before completion of assessment* *Conclusion:* Assessee is entitled for benefit provided under section 11, if Form 10 is filed before completion of assessment. AO disallowed assessee's claim of exemption under section 11(2) on the reasoning that Form 10, which was mandatory to claim for such accumulation, was not filed along with return of income. CIT (A) confirmed the order of AO. Assessee contended that Form 10 was filed before completion of assessment, therefore, it could not be denied benefit provided under section 11(2). *Held:* In view of decision of High Court in the case of Asstt. CIT v. Stock Exchange Ahmadabad (2012) 25 taxmann.com 469 (Guj) : 2012 TaxPub(DT) 3044 (Guj-HC), assessee is entitled for benefit provided under section 11, if Form 10 is filed before completion of assessment. In instant case, admittedly, Form 10 was filed by assessee after due date of filing of return but before completion of assessment, the assessee could not be denied benefit of section 11(2), merely on the reasoning that Form 10 was filed belatedly. *Decision:* In assessee's favour *Followed:* Asstt. CIT v. Stock Exchange Ahmadabad (2012) 25 taxmann.com 469 (Guj) : 2012 TaxPub(DT) 3044 (Guj-HC) Income Tax Act, 1961, Section 11(3) Charitable trust--*Exemption under section 11--Accumulation of income--Amount* accumulated in earlier not offered as income in year under consideration *Conclusion:* Where amount accumulated by assessee in earlier year, had been shown as income in Income and Expenditure Account in pursuance to provisions of section 11(3), and therefore, the said amount was duly offered to tax, impugned addition was liable to be deleted. AO alleged that amount accumulated in earlier year by assessee, was not offered as income in computation of total income in year under consideration in pursuance to provisions of section 11(3) and accordingly, made addition. CIT (A) upheld the addition. Assessee contended that amount accumulated in earlier year, had been shown as income in Income and Expenditure Account in pursuance to provisions of section 11(3) and thus, the same was duly offered to tax. Assessee further contended that fund amounting to Rs. 28,16,959, had been applied in year under consideration, which also represented expenditure out of accumulated fund. *Held:* It was grievance of Revenue that assessee re-accumulated fund, which was to be treated as income under provision of section 11(3). However, the said finding of Revenue was contrary to the facts available on record. From Form 10, it was clearly spelt out that fund of Rs. 25,23,000 was accumulated out of current year's gross receipt. Thus, it could be safely inferred that accumulated amount in earlier year had not been re-accumulated in the year under consideration. Hence, impugned addition was deleted. *Decision:* In assessee's favour IN THE ITAT, AHMADABAD BENCH WASEEM AHMED, A.M. & MADHUMITA ROY, J.M. Madhuchampaklal Charitable Trust v. ITO ITA No. 575/AHD/2023 3 April, 2024 Assessee by: Dhrunal Bhatt, A.R. Revenue by: V.K Mangla, Sr. D.R. ORDER *Waseem Ahmed, A.M.* The captioned appeal has been filed at the instance of the Assessee against the order of the learned Commissioner (Appeals), Ahmadabad, arising in the matter of assessment order passed under section 143(3) of the Income Tax Act, 1961 (here-in-after referred to as "the IT Act") relevant to the assessment year 2016-17. 2. The first issue raised by the assessee is that the learned Commissioner (Appeals) erred in not granting the benefit provided under section 11(2) of the Act, on the reasoning that the form 10 was not filed along with the return of income. 3. In the present case, the assessee is a trust and claimed exemption under section 11(2) of the Act amounting to Rs. 25,22,300 which was disallowed by the assessing officer on the reasoning that form 10 which was mandatory to claim for such accumulation was filed belatedly. Thus, the assessing officer added the sum of Rs. 25,22,300 to the total income of the assessee. 4. Aggrieved assessee preferred an appeal to the learned Commissioner (Appeals) who also confirmed the order of the assessing officer. 5. Being aggrieved by the order of the learned Commissioner (Appeals), the assessee is in appeal before us. 6. The learned Authorized Representative before us filed a paper book running from pages 1 to 25 and contended that the form 10 was filed before the completion of the assessment and therefore, the assessee cannot be denied for the benefit provided under section 11(2) of the Act. 7. On the other hand, the learned Departmental Representative vehemently supported the order of the authorities below. 8. We have heard the rival contention of both the parties and perused the materials available on record. Admittedly, the form 10 was filed by the assessee claiming the exemption of Rs. 25,22,300 under section 11(2) of the Act after the due date of return filing but before the completion of the assessment. The Hon'ble High Court of Gujarat in the case of ACIT v. Stock Exchange Ahmadabad reported in (2012) 25 taxmann.com 469 (Guj) : 2012 TaxPub(DT) 3044 (Guj-HC) has held that the assessee is entitled for the benefit of under section 11 of the Act if the form 10 is filed before the completion of the assessment. The relevant extract of the judgment is reproduced as under: 8. From the facts and contentions noted hereinabove, the sole question that arises for consideration is whether the Tribunal was justified in holding that the time limit prescribed for filing Form No.10 under rule 17 of the Rules read with section 11(2) of the Act is directory. In the present case, it is an admitted position that the assessee had filed Form No.10 as required under rule 17 of the Rules along with the revised returns filed in respect of all the assessment years under consideration. Thus, admittedly, the forms had been submitted before the assessment came to be completed. At this juncture reference may be made to the decision of the Supreme Court in the case of Nagpur Hotel Owners' Association (supra) on which reliance had been placed by the learned counsel for the revenue, wherein it has been held thus: "6. It is abundantly clear from the wordings of sub-section (2) of section 11 that it is mandatory for the person claiming the benefit of section 11 to intimate to the assessing authority the particulars required, under Rule 17 in Form 10 of the Act. If during the assessment proceedings the assessing officer does not have the necessary information, question of excluding such income from assessment does not arise at all. As a matter of fact, this benefit of excluding this particular part of the income from the net of taxation arises from section 11 and is subject to the conditions specified therein. Therefore, it is necessary that the assessing authority must have this information at the time he completes the assessment. In the absence of any such information, it will not be possible for the assessing authority to give the assessee the benefit of such exclusion and once the assessment is so completed, in our opinion, it would be futile to find fault with the assessing authority for having included such income in the assessable income of the assessee. Therefore, even assuming that there is no valid limitation prescribed under the Act and the Rules even then, in our opinion, it is reasonable to presume that the intimation required under section 11 has to be furnished before the assessing authority completes the assessment concerned because such requirement is mandatory and without the particulars of this income the assessing authority cannot entertain the claim of the assessee under section 11 of the Act, therefore, compliance with the requirement of the Act will have to be any time before the assessment proceedings. Further, any claim for giving the benefit of section 11 on the basis of information supplied subsequent to the completion of assessment would mean that the assessment order will have to be reopened. In our opinion, the Act does not contemplate such reopening of the assessment. In the case in hand it is evident from the records of the case that the respondent did not furnish the required information till after the assessments for the relevant years were completed. In the light of the above, we are of the opinion that the stand of the Revenue that the High Court erred in answering the first question in favour of the assessee is correct, and we reverse that finding and answer the said question in the negative and against the assessee." 9. Examining the facts of the present case in the light of the principles enunciated in the above decision, as noticed earlier, the assessee filed Form No. 10 under rule 17 of the Rules at the time of filing revised returns in respect of each of the assessment years under consideration. Thus, evidently, the requirements of section 11(2) of the Act had been complied with before the completion of the assessments. Therefore, while completing the assessments for the assessment years under consideration, the assessing officer had the necessary information in respect of the claim for exemption under section 11 of the Act made by the assessee before him. Thus, this is not a case where information in respect of the claim of the assessee for giving benefit of section 11 of the Act was furnished after the assessments for the relevant assessment years were completed. Under the circumstances, the present case is squarely covered by the aforesaid decision of the Supreme Court. The assessee was, therefore, entitled to the benefit of section 11 of the Act on the basis of the information supplied by it prior to framing of the assessment orders. 8.1 In view of the above, we hold that the assessee cannot be denied the benefit of section 11(2) of the Act, merely on the reasoning that form 10 was filed by the assessee belatedly in the given facts and circumstances. Hence, we set aside the order of the learned Commissioner (Appeals) and direct the assessing officer to delete the addition made by him. Thus, the ground of appeal of the assessee is allowed. 9. The second issue raised by the assessee is that the learned Commissioner (Appeals) erred in confirming the order of the assessing officer on the reasoning that the amount accumulated in the earlier year (Rs. 15,53,217 for the assessment year 2011-12), has not been shown as income under the provision of section 11(3) of the Act. 10. The assessing officer during the assessment proceedings found that the assessee has accumulated the sum of Rs. 15,53,217 for the year ending 31-3-2011, but the same was not offered as income in the computation of total income in the year under consideration in pursuance to the provisions of section 11(3) of the Act. However, the assessee, on question by the assessing officer, submitted that the amount accumulated in the earlier year for Rs. 15,53,217 has been shown as income in the income and expenditure account in pursuance to provisions of section 11(3) of the Act. As per the assessee, out of total application of fund, in the year under consideration, the amount of Rs. 28,16,959 includes the expenditure incurred out the fund accumulated in the earlier year. Thus, according to the assessee the amount accumulated in the earlier year was duly offered to tax. However, the assessing officer dis-agreed with the submission of the assessee by observing as under: From the income & Expenditure, it is seen that during the year the assessee has received Rs. 44,54,163 as revenue receipts, out of these receipts assessee has made application for Rs. 28,16,959 at 63,243% which was below 85% of the receipts. Therefore, assessee can accumulate only Rs. 9,69,080 (85% of Rs. 44,54,163 comes to Rs. 37,86,038 - 28,16,959) only. However, the assessee has accumulated Rs. 25,23,000 during the financial year 2015-16 relevant to assessment year 2016-17. From the above, it is seen that the assessee has re accumulate the amount. The assessee has not utilized Rs. 15,53,217 in last year (i.e. fifth year) but re accumulate part amount. The assessee has utilized accumulated amount within five years if not utilized than deemed income is to be shown in the sixth year under section 11(3) of the Act. 11. Aggrieved assessee preferred an appeal to the learned Commissioner (Appeals) who confirmed the order of the assessing officer by observing as under: I have gone through the facts of the case. Despite the appellant mentioning a plethora of case laws, when it comes to merits, I agree with the assessing officer that on verification of Form No.10, it is seen that the it has not mentioned any amount of utilization of ealier year's accumulation. Therefore, information furnished in Form no.10 filed on 21-11-2018 does not seen to be accurate. The appellant has shown income for Rs. 15,53,217 directly in the income & expenditure A/c. in the last year i.e. fifth year which was accumulation of earlier year's (31-3-2011) as per the Balance Sheet of assessment year 2016-17. I therefore refuse to interfere with the order of the assessing officer on this ground. 12. Being aggrieved by the order of the learned Commissioner (Appeals), the assessee is in appeal before us. 13. The learned Authorized Representative before us filed a paper book running from pages 1 to 26 and reiterated the contention as made before the assessing officer during the assessment proceedings. The learned Authorized Representative to buttress his argument has also drawn our attention on form 10 along with the resolution placed on pages 7 to 8 of the paper book demonstrating that the amount of Rs. 25,26,000 was accumulated under section 11(2) of the Act, out of the receipt pertaining to the year in dispute. Thus, it was contended by the learned Authorized Representative that the amount accumulated in the earlier year has been duly incurred in the income and expenditure account. The fund has been applied in the year under consideration amounting to Rs. 28,16,959 which also represents the expenditure out of the accumulated fund. 14. On the other hand, the learned Departmental Representative vehemently supported the order of the authorities below. 15. We have heard the rival contentions of both the parties and perused the materials available on record. It is the grievance of the revenue that the assessee has re-accumulated the fund which was to be treated as income under the provision of section 11(3) of the Act amounting to Rs. 15,53,217 only. However, this finding of the revenue is contrary to the facts available on record. For this purpose, we refer the form No. 10 place on pages 7 and 8 of the paper book. The relevant extract of the form is reproduced as under: Piyushbhai S. Shah on behalf of Madhu Champaklal Charitable Trust, hereby bring to your notice that it has been decided by a resolution passed by the trustees on 15-9-2016 (copy enclosed) that, out of the income of the trust for the previous years(s), an amount of Rs. 25,23,000 percent of the income of the trust such sum as it is available at the end of the previous years), should be accumulated or set apart till the previous year(s) ending 31-3-2021, in order to enable the trustees to accumulate sufficient funds for object of the trust. 15.1 From the above form 10, it is clearly spelt out that the fund of Rs. 25,23,000 was accumulated out of the current year gross receipt. Thus, it can be safely inferred that the accumulated amount in the earlier year has not been reaccumulated in the year under consideration. In view of the above, we set aside the findings of the learned Commissioner (Appeals) and direct the assessing officer to delete the addition made by him. Hence, the ground of appeal of the assessee is hereby allowed. 16. In the result, the appeal filed by the assessee is hereby allowed.

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Income Tax Act, 1961, Section 11(2)

Charitable trust--Exemption under section 11--Form 10 filed after due date of filing of return but before completion of assessment

Conclusion: Assessee is entitled for benefit provided under section 11, if Form 10 is filed before completion of assessment.

AO disallowed assessee's claim of exemption under section 11(2) on the reasoning that Form 10, which was mandatory to claim for such accumulation, was not filed along with return of income. CIT (A) confirmed the order of AO. Assessee contended that Form 10 was filed before completion of assessment, therefore, it could not be denied benefit provided under section 11(2). Held: In view of decision of High Court in the case of Asstt. CIT v. Stock Exchange Ahmadabad (2012) 25 taxmann.com 469 (Guj) : 2012 TaxPub(DT) 3044 (Guj-HC), assessee is entitled for benefit provided under section 11, if Form 10 is filed before completion of assessment. In instant case, admittedly, Form 10 was filed by assessee after due date of filing of return but before completion of assessment, the assessee could not be denied benefit of section 11(2), merely on the reasoning that Form 10 was filed belatedly.

Decision: In assessee's favour

Followed: Asstt. CIT v. Stock Exchange Ahmadabad (2012) 25 taxmann.com 469 (Guj) : 2012 TaxPub(DT) 3044 (Guj-HC)

Income Tax Act, 1961, Section 11(3)

Charitable trust--Exemption under section 11--Accumulation of income--Amount accumulated in earlier not offered as income in year under consideration

Conclusion: Where amount accumulated by assessee in earlier year, had been shown as income in Income and Expenditure Account in pursuance to provisions of section 11(3), and therefore, the said amount was duly offered to tax, impugned addition was liable to be deleted.

AO alleged that amount accumulated in earlier year by assessee, was not offered as income in computation of total income in year under consideration in pursuance to provisions of section 11(3) and accordingly, made addition. CIT (A) upheld the addition. Assessee contended that amount accumulated in earlier year, had been shown as income in Income and Expenditure Account in pursuance to provisions of section 11(3) and thus, the same was duly offered to tax. Assessee further contended that fund amounting to Rs. 28,16,959, had been applied in year under consideration, which also represented expenditure out of accumulated fund. Held: It was grievance of Revenue that assessee re-accumulated fund, which was to be treated as income under provision of section 11(3). However, the said finding of Revenue was contrary to the facts available on record. From Form 10, it was clearly spelt out that fund of Rs. 25,23,000 was accumulated out of current year's gross receipt. Thus, it could be safely inferred that accumulated amount in earlier year had not been re-accumulated in the year under consideration. Hence, impugned addition was deleted.

Decision: In assessee's favour

IN THE ITAT, AHMADABAD BENCH

WASEEM AHMED, A.M. & MADHUMITA ROY, J.M.

Madhuchampaklal Charitable Trust v. ITO

ITA No. 575/AHD/2023

3 April, 2024

Assessee by: Dhrunal Bhatt, A.R.

Revenue by: V.K Mangla, Sr. D.R.

ORDER

Waseem Ahmed, A.M.

The captioned appeal has been filed at the instance of the Assessee against the order of the learned Commissioner (Appeals), Ahmadabad, arising in the matter of assessment order passed under section 143(3) of the Income Tax Act, 1961 (here-in-after referred to as "the IT Act") relevant to the assessment year 2016-17.

2. The first issue raised by the assessee is that the learned Commissioner (Appeals) erred in not granting the benefit provided under section 11(2) of the Act, on the reasoning that the form 10 was not filed along with the return of income.

3. In the present case, the assessee is a trust and claimed exemption under section 11(2) of the Act amounting to Rs. 25,22,300 which was disallowed by the assessing officer on the reasoning that form 10 which was mandatory to claim for such accumulation was filed belatedly. Thus, the assessing officer added the sum of Rs. 25,22,300 to the total income of the assessee.

4. Aggrieved assessee preferred an appeal to the learned Commissioner (Appeals) who also confirmed the order of the assessing officer.

5. Being aggrieved by the order of the learned Commissioner (Appeals), the assessee is in appeal before us.

6. The learned Authorized Representative before us filed a paper book running from pages 1 to 25 and contended that the form 10 was filed before the completion of the assessment and therefore, the assessee cannot be denied for the benefit provided under section 11(2) of the Act.

7. On the other hand, the learned Departmental Representative vehemently supported the order of the authorities below.

8. We have heard the rival contention of both the parties and perused the materials available on record. Admittedly, the form 10 was filed by the assessee claiming the exemption of Rs. 25,22,300 under section 11(2) of the Act after the due date of return filing but before the completion of the assessment. The Hon'ble High Court of Gujarat in the case of ACIT v. Stock Exchange Ahmadabad reported in (2012) 25 taxmann.com 469 (Guj) : 2012 TaxPub(DT) 3044 (Guj-HC) has held that the assessee is entitled for the benefit of under section 11 of the Act if the form 10 is filed before the completion of the assessment. The relevant extract of the judgment is reproduced as under:

8. From the facts and contentions noted hereinabove, the sole question that arises for consideration is whether the Tribunal was justified in holding that the time limit prescribed for filing Form No.10 under rule 17 of the Rules read with section 11(2) of the Act is directory. In the present case, it is an admitted position that the assessee had filed Form No.10 as required under rule 17 of the Rules along with the revised returns filed in respect of all the assessment years under consideration. Thus, admittedly, the forms had been submitted before the assessment came to be completed. At this juncture reference may be made to the decision of the Supreme Court in the case of Nagpur Hotel Owners' Association (supra) on which reliance had been placed by the learned counsel for the revenue, wherein it has been held thus:

"6. It is abundantly clear from the wordings of sub-section (2) of section 11 that it is mandatory for the person claiming the benefit of section 11 to intimate to the assessing authority the particulars required, under Rule 17 in Form 10 of the Act. If during the assessment proceedings the assessing officer does not have the necessary information, question of excluding such income from assessment does not arise at all. As a matter of fact, this benefit of excluding this particular part of the income from the net of taxation arises from section 11 and is subject to the conditions specified therein. Therefore, it is necessary that the assessing authority must have this information at the time he completes the assessment. In the absence of any such information, it will not be possible for the assessing authority to give the assessee the benefit of such exclusion and once the assessment is so completed, in our opinion, it would be futile to find fault with the assessing authority for having included such income in the assessable income of the assessee. Therefore, even assuming that there is no valid limitation prescribed under the Act and the Rules even then, in our opinion, it is reasonable to presume that the intimation required under section 11 has to be furnished before the assessing authority completes the assessment concerned because such requirement is mandatory and without the particulars of this income the assessing authority cannot entertain the claim of the assessee under section 11 of the Act, therefore, compliance with the requirement of the Act will have to be any time before the assessment proceedings. Further, any claim for giving the benefit of section 11 on the basis of information supplied subsequent to the completion of assessment would mean that the assessment order will have to be reopened. In our opinion, the Act does not contemplate such reopening of the assessment. In the case in hand it is evident from the records of the case that the respondent did not furnish the required information till after the assessments for the relevant years were completed. In the light of the above, we are of the opinion that the stand of the Revenue that the High Court erred in answering the first question in favour of the assessee is correct, and we reverse that finding and answer the said question in the negative and against the assessee."

9. Examining the facts of the present case in the light of the principles enunciated in the above decision, as noticed earlier, the assessee filed Form No. 10 under rule 17 of the Rules at the time of filing revised returns in respect of each of the assessment years under consideration. Thus, evidently, the requirements of section 11(2) of the Act had been complied with before the completion of the assessments. Therefore, while completing the assessments for the assessment years under consideration, the assessing officer had the necessary information in respect of the claim for exemption under section 11 of the Act made by the assessee before him. Thus, this is not a case where information in respect of the claim of the assessee for giving benefit of section 11 of the Act was furnished after the assessments for the relevant assessment years were completed. Under the circumstances, the present case is squarely covered by the aforesaid decision of the Supreme Court. The assessee was, therefore, entitled to the benefit of section 11 of the Act on the basis of the information supplied by it prior to framing of the assessment orders.

8.1 In view of the above, we hold that the assessee cannot be denied the benefit of section 11(2) of the Act, merely on the reasoning that form 10 was filed by the assessee belatedly in the given facts and circumstances. Hence, we set aside the order of the learned Commissioner (Appeals) and direct the assessing officer to delete the addition made by him. Thus, the ground of appeal of the assessee is allowed.

9. The second issue raised by the assessee is that the learned Commissioner (Appeals) erred in confirming the order of the assessing officer on the reasoning that the amount accumulated in the earlier year (Rs. 15,53,217 for the assessment year 2011-12), has not been shown as income under the provision of section 11(3) of the Act.

10. The assessing officer during the assessment proceedings found that the assessee has accumulated the sum of Rs. 15,53,217 for the year ending 31-3-2011, but the same was not offered as income in the computation of total income in the year under consideration in pursuance to the provisions of section 11(3) of the Act. However, the assessee, on question by the assessing officer, submitted that the amount accumulated in the earlier year for Rs. 15,53,217 has been shown as income in the income and expenditure account in pursuance to provisions of section 11(3) of the Act. As per the assessee, out of total application of fund, in the year under consideration, the amount of Rs. 28,16,959 includes the expenditure incurred out the fund accumulated in the earlier year. Thus, according to the assessee the amount accumulated in the earlier year was duly offered to tax. However, the assessing officer dis-agreed with the submission of the assessee by observing as under:

From the income & Expenditure, it is seen that during the year the assessee has received Rs. 44,54,163 as revenue receipts, out of these receipts assessee has made application for Rs. 28,16,959 at 63,243% which was below 85% of the receipts. Therefore, assessee can accumulate only Rs. 9,69,080 (85% of Rs. 44,54,163 comes to Rs. 37,86,038 - 28,16,959) only. However, the assessee has accumulated Rs. 25,23,000 during the financial year 2015-16 relevant to assessment year 2016-17. From the above, it is seen that the assessee has re accumulate the amount. The assessee has not utilized Rs. 15,53,217 in last year (i.e. fifth year) but re accumulate part amount. The assessee has utilized accumulated amount within five years if not utilized than deemed income is to be shown in the sixth year under section 11(3) of the Act.

11. Aggrieved assessee preferred an appeal to the learned Commissioner (Appeals) who confirmed the order of the assessing officer by observing as under:

I have gone through the facts of the case. Despite the appellant mentioning a plethora of case laws, when it comes to merits, I agree with the assessing officer that on verification of Form No.10, it is seen that the it has not mentioned any amount of utilization of ealier year's accumulation. Therefore, information furnished in Form no.10 filed on 21-11-2018 does not seen to be accurate.

The appellant has shown income for Rs. 15,53,217 directly in the income & expenditure A/c. in the last year i.e. fifth year which was accumulation of earlier year's (31-3-2011) as per the Balance Sheet of assessment year 2016-17.

I therefore refuse to interfere with the order of the assessing officer on this ground.

12. Being aggrieved by the order of the learned Commissioner (Appeals), the assessee is in appeal before us.

13. The learned Authorized Representative before us filed a paper book running from pages 1 to 26 and reiterated the contention as made before the assessing officer during the assessment proceedings. The learned Authorized Representative to buttress his argument has also drawn our attention on form 10 along with the resolution placed on pages 7 to 8 of the paper book demonstrating that the amount of Rs. 25,26,000 was accumulated under section 11(2) of the Act, out of the receipt pertaining to the year in dispute. Thus, it was contended by the learned Authorized Representative that the amount accumulated in the earlier year has been duly incurred in the income and expenditure account. The fund has been applied in the year under consideration amounting to Rs. 28,16,959 which also represents the expenditure out of the accumulated fund.

14. On the other hand, the learned Departmental Representative vehemently supported the order of the authorities below.

15. We have heard the rival contentions of both the parties and perused the materials available on record. It is the grievance of the revenue that the assessee has re-accumulated the fund which was to be treated as income under the provision of section 11(3) of the Act amounting to Rs. 15,53,217 only. However, this finding of the revenue is contrary to the facts available on record. For this purpose, we refer the form No. 10 place on pages 7 and 8 of the paper book. The relevant extract of the form is reproduced as under:

Piyushbhai S. Shah on behalf of Madhu Champaklal Charitable Trust, hereby bring to your notice that it has been decided by a resolution passed by the trustees on 15-9-2016 (copy enclosed) that, out of the income of the trust for the previous years(s), an amount of Rs. 25,23,000 percent of the income of the trust such sum as it is available at the end of the previous years), should be accumulated or set apart till the previous year(s) ending 31-3-2021, in order to enable the trustees to accumulate sufficient funds for object of the trust.

15.1 From the above form 10, it is clearly spelt out that the fund of Rs. 25,23,000 was accumulated out of the current year gross receipt. Thus, it can be safely inferred that the accumulated amount in the earlier year has not been reaccumulated in the year under consideration. In view of the above, we set aside the findings of the learned Commissioner (Appeals) and direct the assessing officer to delete the addition made by him. Hence, the ground of appeal of the assessee is hereby allowed.

16. In the result, the appeal filed by the assessee is hereby allowed.