The Tax Publishers2019 TaxPub(DT) 2562 (Ahd-Trib)

INCOME TAX ACT, 1961

Section 11)(1)(a)

A charitable or religious trust is entitled to accumulated 15% of receipt or income derived from property held under trust and not on resultant income/receipt.

Charitable trust - Accumulation of income under section 11(1)(a) - Computation Accumulation of 156 -

Assessee-trust filed the return of income declaring deficit (excess expenditure incurred over income). AO however, denied entitlement towards general accumulations to the extent of 15% contemplated under section 11(1)(a) as the amount applied for the object of Trust (Rs. 7,99,18,102) already surpassed income derived from property held under trust. The deficit was thus restricted to Rs. 38,16,030 by the AO. CIT(A) allowed assessee's claim. Held: In parity with the view already taken by the co-ordinate Bench in assessee's own case in the earlier assessment year, the CIT(A) was justified in admitting the claim of the assessee for accumulation of income. The CIT(A) has rightly viewed that accumulation of income under section 11(1)(a), i.e., 15% of the income is unfettered and not subject to any conditions.

Followed:Co-ordinate Bench in its own case in ITA No. 2208/Ahd/2013, Order, dt. 29-9-2015.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13



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