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2008] 306 ITR 153 (Delhi). [2008] 166 TAXMAN 147 (DELHI) HIGH COURT OF DELHI Bharat Krishak Samaj* v. Deputy Director of Income-tax (E) Trust Circle - II MADAN B. LOKUR AND DR. S. MURALIDHAR, JJ. INCOME-TAX APPEAL NO. 1085 OF 2006 AUGUST 30, 2007 Section 11 of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under - Assessment year 1997-98 - Assessee, a registered society, sought permission to accumulate unspent funds under section 11(2) for objects of trust - Assessing Officer denied benefit of accumulation as he was of view that objects for which accumulation was sought were not particularized inasmuch as they covered entire range of objects of trust - Whether in view of Delhi High Court decision in CIT v. Hotel and Restaurant Association [2003] 261 ITR 190, Assessing Officer erred in denying claim of assessee for accumulation of unapplied income in terms of section 11(2) - Held, yes Section 2(24) of the Income-tax Act, 1961 - Income - Definition of - Assessment year 1997-98 - Assessee society received Rs. 2 lakhs from WAFM for holding a national convention for farmers - According to assessee, it was an advance for holding convention which could not be held in that year but was held in subsequent year and amount was utilized therefor - There was, however, nothing to suggest from records that amount was actually received as an advance and it was also not clear whether convention was to be held for and on behalf of donor or was to be utilized for holding a national convention of assessee - Whether in view of failure of assessee to explain said receipt, provisions of section 2(24)(iia) would be attracted and amount must be treated as income of assessee and not as capital receipt for assessment year in question - Held, yes CASES REFERRED TO Director of Income-tax (Exemption) v. Daulat Ram Education Society [2005] 278 ITR 260(Delhi) [Para 9] and CIT v. Hotel & Restaurant Association [2003] 261 ITR 190 (Delhi) [Para 11]. K. Sampath and R.K. Raghava for the Appellant. J.R. Goel for the Respondent. JUDGMENT Madan B. Lokur, J. - The assessee is aggrieved by an order dated 28-2-2006 passed by the Income-tax Appellate…

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