INCOME TAX OFFICER v. CSI TECHNICAL AND VOCATIONAL TRAINING TRUST
[Citation -1985-LL-0822-1]

Citation 1985-LL-0822-1
Appellant Name INCOME TAX OFFICER
Respondent Name CSI TECHNICAL AND VOCATIONAL TRAINING TRUST
Court ITAT
Relevant Act Income-tax
Date of Order 22/08/1985
Assessment Year 1978-79
Judgment View Judgment
Bot Summary: The assessee is a trust to which the provisions of s. 11 are applicable. 1978-79 the assessee s income came to Rs. 212790. The assessee had claimed accumulation in respect of the balance amount to Rs. 78400 under the provisions of s. 11. The ITO considered that the provisions of the s. 11 have not been complied with by the assessee. Of sub-s. of s. 11 and to Form No. 10 and pointed out that the purpose to be mentioned in Form No. 10 should be the purpose of the trust, that in this case in Form No. 10 the assessee has enumerated the purposes of trust and therefore, the assessee must be taken to have complied with the provision of s. 11(2) and Form No. 10. On behalf of the Revenue it is contended that the assessee has not specified any particular purpose and therefore, the benefit of accumulation under s. 11(2) is not available to the assessee. A reading of s. 11(2) and Form No. 10 clearly shows that the assessee is not required under this provision to specify any particular object of the trust on the purpose for which the accumulation is proposed to be made.


This appeal by Revenue is for asst. yr. 1978-79. assessee is trust to which provisions of s. 11 are applicable. For this asst. yr. 1978-79 assessee s income came to Rs. 212790. Out of this sum of Rs. 133330 was applied for purpose of that trust and ITO has allowed exemption under s. 11 on this amount. assessee had claimed accumulation in respect of balance amount to Rs. 78400 under provisions of s. 11 (2). notice in Form No. 10 was filed alongwith return by assessee and reasons stated by reason for accumulating funds are: (i) to help CSI though Technical and Vocational Training Programme to prepare youth from under -privileged sections of society in skills for employment and self-employment enabling them to work in and for just society; (ii) to become stabilising factor for technical and vocational training programme; (iii) to promote new approaches to vocational training particularly in rural are; (iv) to set standards and promote Church s concern for youth in this field. ITO considered that provisions of s. 11 (2) have not been complied with by assessee. He has pointed out that reasons given in Form 10 represent practically entire objects of assessee-trust. He took view that in order to accumulate under s. 11 (2) r/w r. 17, assessee should have stated specific purpose for which income is being accumulate n d comes this has not been done, claim for accumulation cannot be allowed. He, therefore, brought to tax sum of Rs. 79,480. AAC agreed with assessee. He adverted to cl. (a) of sub-s. (2) of s. 11 and to Form No. 10 and pointed out that purpose to be mentioned in Form No. 10 should be purpose of trust, that in this case in Form No. 10 assessee has enumerated purposes of trust and therefore, assessee must be taken to have complied with provision of s. 11(2) and Form No. 10. He has pointed out that in Form No. 10 assessee is not entitled to specify and purpose other than that which falls within objects of trust and benefit of accumulation cannot be denied to assessee on simple ground that entire objects of trust are reproduced in Form No. 10. On behalf of Revenue it is contended that assessee has not specified any particular purpose and therefore, benefit of accumulation under s. 11(2) is not available to assessee. We are unable to agree with Revenue. reading of s. 11(2) and Form No. 10 clearly shows that assessee is not required under this provision to specify any particular object of trust on purpose for which accumulation is proposed to be made. only requirement under provision is that unspent portion of income of trust can be accumulated for purpose of trust. It is clear that assessee has specified this requirement by enumerating in Form No. 10 various objects of trust. Accumulation is therefore only for purpose of trust and is permissible under s. 11 (2) appeal is, therefore, dismissed. *** INCOME TAX OFFICER v. CSI TECHNICAL AND VOCATIONAL TRAINING TRUST
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