Trust to accumulate 25% of income derived from property before application

Indian Medical Association Vs ITO (ITAT Ahmedabad) Having regard to the plain language of the above provision, it is clear that a charitable or religious trust is entitled to accumulate twenty-five per cent, of its income derived from property held under trust. For the present purposes, the donations the assessee received, would constitute its property and it is entitled to accumulate twenty-five per cent of that income and not the 25% of income left after application. Therefore, assessee was entitled for carry forward of deficit @ 15%. FULL TEXT OF THE ITAT JUDGEMENT 1. These two appeals have...