Law:

Section:

Section 11 of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under - Assessment year 1980-81 - Assessee charitable trust had received voluntary contributions of certain amount - Assessing Officer after granting permissible accumulation of 25 per cent, levied tax in hands of assessee which was upheld by Commissioner (Appeals) - During pendency of appeal before Tribunal, assessee moved an application before Commissioner accompanied by Form No. 10 and a copy of resolution passed by trustees to effect that donation might be treated as general donation and assessee be permitted to accumulate trust income under section 11(2) by condoning delay in filing Form No. 10 - Commissioner, however, rejected said application - Assessee filed additional ground before Tribunal stating that trust was not taxable in view of resolution of accumulation and notice thereof to ITO under section 11(2) - Tribunal admitted additional ground and taking view that since assessee had complied with all conditions prescribed in section 11(2) concluded that assessee-trust was entitled to benefit allowable under said provision - Whether, on facts, Tribunal was well within its jurisdiction to entertain new ground by which assessee claimed benefit under section 11(2) and adjudicate tax liability of assessee - Held, yes - Whether, therefore, there was no infirmity in order of Tribunal allowing benefit to assessee under section 11(2) - Held, yes FACTS The assessee was charitable trust, registered under the provisions of the Bombay Public Trusts Act, 1950. During the year under consideration, the assessee trust received voluntary contributions amounting to Rs. 2,04,468. The said donations were treated as income within the meaning of section 2(24)(iia) by the Assessing Officer. The assessee contended that the donations of Rs. 1,74,432 and Rs. 9,036 included in the aforesaid total amount of donations were towards the corpus of the trust and in support of the said contentions, confirmation letters from two donors were submitted. The Assessing Officer did not accept the submission and after granting permissible accumulation of 25 per cent, held the…

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