INCOME TAX ACT, 1961

Section 11

Charitable trust - Exemption under section 11 - Non-acceptance of plea for accumulation of income as per section 11(2) read with Form No. 10 - Assessee did not comply with requirements of section 11(2)

Tribunal sustained denial of tax exemption claimed in terms of section 11 consequent to non-acceptance of plea for accumulation of income as per section 11(2) read with Form No. 10. It held that though assessee-trust filed Form No. 10, however, it should be considered rectified in view of resolution passed. Further, the resolution passed did not show the name of the assessee as well as the period. Thus, the resolution was also defective and it was not having all the information required. Further, the assessee did not comply with the requirements of section 11(2). Assessee contended that the accumulation of surplus funds was resolved to be spent for the purpose of construction of building and purchase of assets for usage of the trust and corrected Form No. 10 along with the said resolution was furnished before the Tribunal, but the Tribunal failed to appreciate the same in correct perspective. Held: As a matter of fact, the assessee could have approached the Tribunal by way of a miscellaneous application if a document like Form No. 10 along with the resolution filed before the Tribunal contained all the details and evidence of such accumulation set apart by the assessee for the purpose of construction of building etc., in terms of the provisions of section 11 permitted by law. Further, on perusal of Tribunal's order, it was found that that though the Tribunal referred to the resolution passed by the assessee, without finding it to be defective, but it did not give any benefit of the same to the assessee. Therefore, the matter was remanded to the Tribunal for re-examining the Form No. 10 and the said resolution along with evidence of surplus amount having been spent for the purposes of the trust.

REFERRED :

FAVOUR : Matter remanded

A.Y. :

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