Shree Subrahmanya Temple Vs ITO (ITAT Bangalore)
ITAT Bangalore: 15% Accumulation under Section 11(1)(a) is Unconditional – Trust granted Relief, Additional accumulation issue remanded
Bangalore ITAT in the case of Shree Subrahmanya Temple vs. ITO (Exemption) has partly allowed the appeal of the assessee by granting the statutory accumulation of 15% u/s 11(1)(a) & remanding the issue of the remaining accumulation u/s 11(2) to the file of AO for fresh consideration.
Assessee is a charitable trust & during the year has shown receipt of ₹45,20,536 against which claimed application toward charitable purposes which are detailed as under: revenue expenditure of ₹33,13,891, capital expenditure of ₹45,875 & bank deposit of ₹10,88,080. AO in the assessment proceeding found that the bank deposit is not the application of receipt for charitable purposes nor it directly linked to charitable activity. AO found that Assessee has not applied its receipt to the extent of 85% for its objective & also not filed Form 10B suggesting that the amount is accumulated or set apart as per 11(2). Further, Assessee has filed belated return which is in contravention of section 13(9) & prohibits the benefit of section 11(2) in case of belated return. AO also found that Assessee is not eligible for accumulation of 15% as provided u/s 11(1) & accordingly, computed the taxable income of the assessee trust at ₹11,60,770.
