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Even in the order of assessment the AO has accepted that Form-10 was filed by the assessee and the only grievance was that the purpose for accumulation was not mentioned. When the purpose of accumulation as contained in the Board Resolution annexed along with Form-10 was brought to the notice of the ld. CIT(A), he also overlooked the same and concurred with the findings of the AO. Thus, the order of revenue authorities cannot be sustained and the asessee is therefore, entitled to the benefit of accumulation.

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Section 11 of the Income Tax Act, 1961- Trust - Exemption to trust - Claim of assessee for accumulation ought to have been accepted by the revenue authorities as assessee has filed Form-10 before the AO and CIT(A) along with the copy of the Board Resolution of the trustees mentioning the purpose for which accumulation is sought.

Facts: AO rejected the plea of the Assessee for accumulation for the reason that Form-10 did not specify the purpose for which the surplus income which is not spent will be utilized in future. Before CIT(A) the Assessee pointed out that Form-10 was filed before the AO and a copy of the Board Resolution wherein the purpose of accumulation was clearly set apart but CIT(A) upheld the order of AO. On further, appeal, Tribunal concurred with the view of CIT(A).

Held, that it is clear from the perusal of the record that the assessee has filed Form-10 before the AO and CIT(A) along with the copy of the Board Resolution of the trustees mentioning the purpose for which accumulation is sought, thus, the claim of assessee for accumulation ought to have been accepted by the revenue authorities. Even in the order of assessment the AO has accepted that Form-10 was filed by the assessee and the only grievance was that the purpose for accumulation was not mentioned. When the purpose of accumulation as contained in the Board Resolution annexed along with Form-10 was brought to the notice of the ld. CIT(A), he also overlooked the same and concurred with the findings of the AO. Thus, the order of revenue authorities cannot be sustained and the asessee is therefore, entitled to the benefit of accumulation - DEVICHAND KESAJI SWETHAMBAR JAIN TRUST V/s ASSTT. CIT - [2020] 26 ITCD Online 100 (ITAT-BANGALORE)