Tribunal held that the assessee had duly mentioned the purpose of accumulation, i. e., to compensate the trading members or a constituents, where a trading member was declared a defaulter on the stock exchange. This was the sole object of the trust for which this protection fund was created and thus sufficiently satisfied the requirements of section 11(2) . Similar claim of the assessee had been allowed in the earlier years by the Department. Non-specification of purpose for which the funds were accumulated by the assessee under section 11(2) would not be fatal to the exemption claimed. Specification of certain purpose or purposes is needed for accumulation of the trust’s income under section 11(2) but the details of the purposes for which the income was accumulated need not be specified. The trust had only one object and thus there was no question of ambiguity. The assessee was entitled to exemption under section 11(2) of the Act. ( AY.2012-13)
National Stock Exchange Investor Protection Fund Trust v. Dy. CIT (E) (2020) 78 ITR 12 (SN) (Mum) (Trib)
S. 11 : Property held for charitable purposes – Accumulation of income – Details of purposes for which income accumulated need not be specified in Form 10- Investor protection fund Trust — No prohibition in law that trust qualified under Sections 11 to 13 could not claim exemption. [ S.11(2) ,13(3), Form No. 10 ]