Prof. J.P. Trivedi Memorial Trust Vs ITO (ITAT Pune)
The case concerns two appeals filed by the assessee, a charitable trust, against separate orders dated 13.08.2025 passed by the Commissioner of Income Tax (Appeals)/NFAC for Assessment Years (AYs) 2017–18 and 2018–19. Since identical issues were involved, both appeals were heard together and decided through a common order.
For AY 2017–18, the assessee, a trust registered under the Bombay Public Trust Act, 1950 and holding registration under sections 12A(a) and 80G(5)(vi) of the Income Tax Act, filed its return declaring nil income. It reported gross receipts of Rs.1,89,43,855 and claimed expenditure of Rs.47,55,973. The trust also claimed exemption under section 11(2) amounting to Rs.1,11,00,000 as accumulated income.
The case was selected for scrutiny due to delayed filing of Form 10 and substantial accumulation under section 11(2). The Assessing Officer (AO) disallowed the exemption claim, stating that the assessee failed to comply with conditions under section 11(2)(a), (b), and (c), and did not file Form 10 electronically within the prescribed time. Consequently, the AO added the accumulated amount to the total income.
On appeal, the CIT(A)/NFAC upheld the AO’s decision. It held that section 11(2)(a) requires a specific purpose for accumulation, and mere mention of accumulation as an object of the trust does not qualify. It also emphasized that filing Form 10B within the stipulated time is mandatory from AY 2017–18 onward, and failure to do so justified denial of exemption.
