India Itme Sociey, Mumbai vs Cit (Exemption), Mumbai on 27 February, 2023
018. The Trustees, The B.N. Gamadia Parsi Hunnarshala vs.
Assistant Director of Income Tax (12.04.2001 - ITAT
Mumbai) : MANU/IU/5003/2001 it was held that Deemed
income is different from income contemplated under
provision of statutes and therefore Assessee shall not
entitle to claim benefit of accumulation out of such
deemed income
"9. The matter may also be looked from another
angle. The assessee would be allowed to accumulate
income if there is real income. Something, which is
not in the possession of the assessee, cannot be
accumulated or utilized at a later date. Under
Section 11(3) the sum which is applied to the
purposes other than the charitable or religious
purposes would also be treated as deemed income
of the assessee though the accumulated income is
not available with the assessee because it was
applied for a different purpose. Reversing to Section
11(1) (a) and 11(2) of the Act, 25 per cent of the
income can be accumulated or set apart for an
application to some specified purposes in India,
which means such amount should be available with
the assessee for application. In the case of deemed
income where the amount is already spent by an
assessee (for the purposes other than charitable
purposes) it cannot be said that the assessee
accumulates with an intention to apply it for a
rightful purpose. Thus, even on the limited count
the assessee cannot claim the benefit of
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ITA no.721 & 722/Mum/2021
India ITME Society; A.Y. 15-16 & 16-17
accumulation because the accumulation is allowed
only if the intention of the assessee is to apply the
same for a specific purpose. Thus, assessee cannot
claim the benefit of accumulation with respect to the
deemed income. In the case of Director of Income-