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Miss Moksh Mahajan, A.M. These two appeals filed by the assessed as well by the revenue are consolidated and disposed of by a single order as common issue is involved in both the appeals.

2. Taking up the assesseds appeal filed in ITA No. 2524/Del/1996 first, Shn Ajay Vohra, the learned authorised representative submitted that the assessed is a charitable trust. The aforesaid trust was started in 1961 by Late Sir Sobha Singh. It has been accepted as a charitable trust right till assessment year 1991-92. The objects of the trust have been listed in clause 30 of the trust deed (p 60 of the paper book). There are as many as 19 objects listed on pp 6 and 7 of the aforesaid trust deed. As per the provisions of section 11(2) of the Act, The assessed is allowed to accumulate 75 per cent of the income, subject to certain conditions. It has to give a notice in writing to the officer in the prescribed manner specifying the purpose for which the income is being accumulated or set apart and the period for which the income is to be accumulated or set apart, not exceeding however 10 years. Secondly, that the money so accumulated or set apart is to be invested or deposited in the forms or modes specified in sub-section (5) (sic of s.11) of the Act. The assessed passed a resolution in a meeting held on 26-3-1992, resolving that the funds of the trust available at the end of the current financial year ending on 31-3-1992, be accumulated up to a period of 10 years, i.e. till 31-3-2002 (p 32 of the paper book). In pursuance of this resolution, the assessed addressed a letter to the Assistant Director of the Income-tax (Exemption) in the form of the notice as prescribed in Form No. 10 intimating its decision for accumulation of funds. The purposes for the aforesaid funds were given in the notice. As would be evident, accumulation was for the purposes of fulfillling 6 objects out of 19 objects as listed in the trust deed. The assessing officer after holding that the accumulation of surplus funds was not for specific purpose denied, the benefit to the assessed. The learned Commissioner (Appeals) concurred with the finding of the assessing officer. While doing so, he relied on the decision of the Calcutta High Court in case of Director of Income-tax (Exemption) v. trustees of Singhania Charitable Trust (1993) 199 ITR 819 (Cal). As per the reasoning given, there has to be a specific purpose for accumulation and the objects of the trust cannot be listed for the purpose of accumulation. Citing certain observations of their Lordship of Calcutta High Court, it was held that the assessed was not entitled to the benefit under section 11(2) of the Act.

(d) To start health centre and to impart instructions in the art of health living;
(e) to establish hospitals, dispensaries, nursing homes, maternity centre, nature cure and yogic health homes in India;
(f) To construct Dharmasalas or sarais in and around hospitals in Delhi or New Delhi to accommodate poor patients and their attendants.

9. As it would appear from these objects and cannot be said to be concrete as having definiteness about that. There is vagueness in these as much as object No. (e) as above makes mention of establishing hospitals, dispensaries, nursing homes, maternity centre and also nature cure and jogging homes in India. Similarly, object No. (a) makes mention to start schools, colleges and other cultural and educational institutions for providing physical, mental and moral instructions and training. While examining distinction between purposes and objects, it is found that these are not definite and specific objects and each one of these six objects listed above has very many others in these which makes the objects to be vague and general. Section 11(1) itself provides for marginally setting apart and accumulation in excess of 25 per cent of the income of the trust. It is only such accumulation which can be taken for the broad purpose of the trust as a whole that the statute does not require specification of purpose. Such setting apart for any of the purposes of the trust is, however, a short-term accumulation not beyond the year next succeeding. It is sub-section (2) which provides for long-term accumulation of the income. Obviously, such long-term accumulation should be for a definite and concrete purpose or purposes. What the assessed has sought to be permitted to do here is to accumulate not for any determinate purpose or purposes but for the objects as enshrined in the trust deed in a blanket manner. Accumulation in such a global manner is definitely not in the contemplation of section 11(2) when it is construed in its setting. The assesseds contention that saving and accumulation of income for future application of same is for the purpose as listed from (a) to (f) as above (which means not only six but very many other purposes as these purposes have so many other purposes embodied in these). In the widest term so as to embrace so many of the objects which would render the requirement of specification of the purpose foi accumulation in that sub-section redundant. The purposes to be specified cannot, under any circumstances, tread beyond the objects clause of the trust. The legislature could not have thought of the need of specification of the purpose if it did not have in mind the particularity of the purpose or purposes falling within the ambit clause of the trust deed when sub-section (20 of 11 requires specification of purpose, it does so having in mind a statement of some specific purpose or purposes out of the multiple purposes for which the trust stands. Were it not so, there would have been no mandate for such specification. For, a charitable trust, in no circumstances, can apply its income, whether current or accumulated, for any purposes other than the objects for which it stands. The very fact that the statute requires the purpose to be accumulation to be specified implies such a purpose to be concrete one, an itemised purpose or a purpose instrumental or ancillary to the implementation of its object or objects. The very requirement of specification of purpose predicates that the purpose must have an individuality. In my view, the provisions of sub-section (2) is a concession provision to enable a charitable trust to meet the contingency where the fulfillment of any project within its object or objects needs heavy outlay to call for accumulation to amass sufficient money to implement it. Therefore, specification of purpose as required by section 11(2) admits of no amount of vagueness about such purpose.

2. The facts of the case are adverted to at length in the separate orders passed by the learned Members of the Division Bench but for purposes of disposing of the present reference I need to summarise these as follows :

3. The assessed-trust was started in 1961 by Late Sir Sobha Singh and it is a matter of record that the same has been accepted as a charitable trust in all these years up to assessment year 1991-92. As per the trust deed there are 19 objects. As per provisions of section 11(2) of the Act a charitable trust is entitled to accumulation of 75 per cent of its income subject to certain conditions and these being (1) It has to give a notice in writing to the assessing officer in the prescribed manner specifying the purpose for which the income is being accumulated or set apart and the period for which the income is to be so accumulated or set apart not exceeding 10 years.

"Perhaps to meet the contingency where the fulfillment of a project requires heavy outlay and calls for accumulation of funds as observed in the case of Singhania Charitable Trust. "

23. I would like to add further to this that a charitable institution which wants to accumulate its income for a long period of 10 years to carry out the charitable objects as set out in the trust deed does require time to think, time to plan and time to garner its resources, etc. to fulfill those objects for which it has sought accumulation of funds and the legislature in its wisdom has allowed a long period of 10 years and I, therefore, really cannot appreciate the arguments of the learned departmental Representative on behalf of the revenue that even when the application for accumulation is filed the applicant trust must mention the type of institution medical or educational which it will set up as also the type of education or medical treatment which it will impart. This, in my opinion, was never the intention of the law-makers when the provision in the form of a concession was introduced whereby a charitable institution need not pay any tax on its income earned for a good period of 10 years provided it carried out charitable activities with a view to fulfillling the specific objects mentioned in the application seeking accumulation.