| Question And Answer | |
|---|---|
| Subject: | Whether Accumulation under section 11(2) for specific object is not mentioned in form No 10 whether exemption can be denied ? |
| Category: | Income-Tax |
| Querist: | Ajay Kumar jain |
| Answered by: | Advocate Shashi Ashok Bekal |
| Tags: | accumulation, charitable trust, form no 10 |
| Date: | May 15, 2021 |
One trust has filed form no 10 for accumulation under section 11(2) of act and objects has been mentioned for old age home, hospital and dispensary and school. So wanted to reject claim on the grounds that specific purpose has not been mentioned. Any ITAT chandigarh bench or punjab and haryana high court or supreme court decision. If available please share.
As we understand,
The Assessee will have the liberty to file Form 10 belatedly and be entitled to statutory benefit. it is incumbent upon concerned authority to examine admissibility of benefit than to foreclose assessee on technicalities. This has been upheld by the Hon’ble Madras High Court in the case of Chandraprabhuji Maharaj Jain v. DCIT(E) [2019] 110 taxmann.com 11 (Madras).
The Hon’ble Bombay High Court in the case of Sitaldas K. Motwani vs DGIT [2010] 323 ITR 223 (Bombay) held that when substantial justice and technical considerations are pitted against each other, cause of substantial justice deserves to be preferred.
Therefore, looking into the nature of activities and objects of the trust, the department may take a liberal view, and may be request the assessee to revise Form 10.
Note: In CIT v. Gokula Education Foundation (2017) 394 ITR 236/292 CTR 32 / 77 taxmann.com 38 (Karn) (HC) SLP is granted to the revenue; CIT v. Gokula Education Foundation (2017) 248 Taxman 13 (SC) dismissing the appeal of the revenue, the Court held that ;where the objects of a trust are charitable in character and the purpose mentioned in Form No. 10 were for achieving objects of trust, merely because details were not furnished, assessee could not be denied benefit of exemption under section 11 (2)
Dr.K.Shivaram Senior Advocate