INCOME TAX ACT, 1961

--Charitable trust--Exemption under section 11Form No. 10 was filed at the time of assessment proceedings--In the first round of litigation, Tribunal directed the assessing officer to reframe the assessment as per law if assessee had filed Form No. 10 along with the return of income, while complying with the direction of the Tribunal, assessing officer concluded that since Form No. 10 was not filed with the return of income, assessee did not satisfy the conditions laid down under section 11(2) so as to avail the exemption provided under section 11. Accordingly, surplus amount was taxed. Assessee argued that as per section 11(1)(a), no prescribed form is required for accumulation of income which is not in excess of 25 per cent of the income and further submited that Form No. 10 was filed before completion of the original assessment. Held: If Form No. 10 was available at the time of assessment proceeding, claim of the assessee could not be rejected merely on ground that Form No. 10 had not been filed along with the return of income. As per section 11(1)(a), assessee was entitled for flat deduction of 25 per cent without any condition.