Lack of declaration in Form No. 10 regarding specific purpose – Income Tax Case Law

Case Law – Section 11 of the Income-tax Act, 1961 – Charitable or religious trust

Commissioner of Income-tax (Exemptions) v. Bochasanwasi Shri Akshar Purshottam Public Charitable Trust – [2019] 102 taxmann 122 (Gujarat) HIGH COURT OF GUJARAT

Exemption of income from property held under (Accumulation of fund) – the Assessment year 2008-09 – Whether lack of declaration in Form No. 10 regarding specific purpose for which funds were being accumulated by assessee-trust, would not be fatal to exemption claimed under section 11(2) – Held, yes – Whether, therefore, where pursuant to enquiry raised by Assessing Officer, assessee passed a formal resolution specifying that funds were set apart for ongoing hospital projects of trust and for modernization of existing hospitals, it was to be regarded as sufficient compliance of requirements of Act and, thus, assessee’s claim for exemption under section 11(2) in respect of funds accumulated was to be allowed – Held, yes [Para 8] [In favour of assessee]

Categories: Income Tax
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