Senior Citizen Santacruz (Paschim) Sanstha Vs. Commissioner of Income Tax (Appeals) – NFAC, Mumbai

Parties Involved

Facts Summary

The assessee, Senior Citizen Santacruz (Paschim) Sanstha, filed its Return of Income for the Assessment Year 2017-18 on 02.09.2017, declaring total income at NIL. The trust is registered as a charitable organization with DIT(E), Mumbai, under section 12A. During scrutiny, the assessee claimed a deduction under section 11(2) of the Income Tax Act, 1961 for an accumulation of Rs. 70,37,775/-. The Assessing Officer disallowed this claim, noting that the purpose for accumulation mentioned in Form No. 10 as 'Charitable Purpose' was too vague and lacked specificity. Aggrieved by this order, the assessee appealed to the Commissioner of Income Tax (Appeals), who upheld the disallowance. The assessee then filed an appeal before the Income Tax Appellate Tribunal.…

Legal Issues

• 1. Whether the deletion of accumulation under section 11(2) amounting to Rs. 770,37,775/- of the Income Tax Act, 1961, was justified.
• 2. Whether the rejection of Form No. 10 filed along with the return of income was correct.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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