| Question And Answer | |
|---|---|
| Subject: | Accumulation of surplus u/s 11(2) |
| Category: | Income-Tax |
| Querist: | Manish Khanna |
| Answered by: | Law Intern |
| Tags: | charitable trust |
| Date: | August 14, 2025 |
If the accumulation of surplus is not shown as appropriation in Income & expenditure Account, can the benefit of 11(2) be denied.
I ran a ICAI Chat GPT query, and got the following cases
- Gujarat State Board of School Textbooks v. ACIT (Exemptions) [2022] 139 taxmann.com 155 (ITAT Ahmedabad)
- ITO (E) v. Chamber of Income Tax Consultants [2020] 117 taxmann.com 321 (ITAT Mumbai)
- Bharat Diamond Bourse v. ADIT (Exemptions) [2021] 127 taxmann.com 54 (ITAT Mumbai) I am unable to find the cases, hene this query
The citation appears to be wrong. In principle, the question whether the accumulation is shown as appropriation in the I&E Account or not appears to be irrelevant. What is relevant is whether the substantive and procedural requirements such as filing Form No. 10, specifying a purpose, and investing in specified modes is complied with or not.
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