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Income Tax Appellate Tribunal, KOLKATA BENCHES : SMC
Before: SHRI J.SUDHAKAR REDDY
This is an appeal filed by the assessee directed against the order of the Commissioner of Income Tax (Appeals)-XIV, Kolkata dt.03.02.2014 relating to A.Y.2008-09. 2. Facts in brief : The assessee is a charitable trust registered on 14.08.1969 u/s 12A of the Income Tax Act, 1961 (Act). The issue before me is the disallowance of exemption to the assessee u/s 11(2) of the Income Tax Act, 1961 (Act).
After hearing the rival submissions I find that the assessee has not spent the amount for which an option was exercised by it u/s 11(2) of the Act within the time prescribed. The AO had treated this amount as income of the assessee. On appeal the ld. CIT(A) finds no merit in this case. -Nangia Foundation A.Y.2008-09
I find no merit in the assessee’s appeal. The period of ten years for accumulation u/s 11(2) of the Act prior to 31.03.1998 expires this year and the amount determined was Rs.4,31,816.38. Similarly for accumulation prior to 31.03.2003 and after 01.01.1998, the period of five years expires this year for Rs.1,60,000/-. As the amount could not be spent within the specific period it has rightly gone to tax by the assessing authority. Hence these grounds of appeal
are dismissed.
5. The assessee has raised an additional ground on the issue of rate of tax. As it is a legal ground the same is admitted. It is the case of the assessee that tax should be charged at the normal rates and not at the maximum marginal rate. This ground has not been adjudicated by the ld. CIT(A). As this claim requires verification I set aside the matter this issue of rate of tax to the file of AO for fresh adjudication denovo in accordance with law.
6. In the result the appeal of the assessee is allowed in part.