The Tax Publishers2019 TaxPub(DT) 2013 (SC) : (2019) 263 TAXMAN 0247

INCOME TAX ACT, 1961

Section 261 Section 11

Where the department preferred SLP to appeal against the judgment of Gujarat High Court in CIT v. Bochasanwasi Shri Akshar Purshottam Public Cable Trust (2018) 409 ITR 591 (Guj) : 2018 TaxPub(DT) 6730 (Guj-HC), whereby the High Court held that during the course of assessment proceedings, AO called upon the assessee to explain the position in response to which, the assessee in detail pointed out background under which the Board of Trustees had met, considered the material and eventually passed a formal resolution setting apart the funds for the ongoing hospital projects of the Trust and for modernization of the existing hospitals, thus, there was a clear statement made by the assessee setting out the purpose for which the income was being set apart and hence, deduction under section 11(2) could not be denied, the Supreme Court condoned delay and dismissed the SLP, however, leaving the question of law open to be urged in an appropriate case.

Appeal (Supreme Court) - Special leave petition - Charitable trust - Exemption under section 11--Accumulation of income

Department preferred SLP to appeal against the judgment of Gujarat High Court in CIT v. Bochasanwasi Shri Akshar Purshottam Public Cable Trust (2018) 409 ITR 591 (Guj) : 2018 TaxPub(DT) 6730 (Guj-HC), whereby the High Court held that during the course of assessment proceedings, AO called upon the assessee to explain the position in response to which, the assessee in detail pointed out background under which the Board of Trustees had met, considered the material and eventually passed a formal resolution setting apart the funds for the ongoing hospital projects of the Trust and for modernization of the existing hospitals, thus, there was a clear statement made by the assessee setting out the purpose for which the income was being set apart and hence, deduction under section 11(2) could not be denied. Held: The Supreme Court condoned delay and dismissed the SLP, however, leaving the question of law open to be urged in an appropriate case.

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