Research and Information System for Developing Countries, New Delhi V. DDIT (E), New Delhi

ITA 2806/DEL/2014

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 5040 (ITAT-DELHI)
• Duration Of Justice: 3 year(s) 3 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-08-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Next Hearing Date: 15-06-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 06-05-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Opportunity of being heard
• Section: 143(3); 80G; 12A; 10B; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH SMC : NEW DELHI) BEFORE SHRI H.S. SIDHU, JUDICIAL MEMBER ITA NO. 2806/DEL/2014 ASSESSMENT YEAR: 2010-11 RESEARCH & INFORMATION SYSTEM VS. DDIT(E), FOR DEVELOPING COUNTRIES, INV. CIRCLE-II, 2408, ZONE-4B, 4 TH FLOOR, 24 TH FLOOR, E-2, INDIA HABITAT CENTRE, PRATYAKSH KAR LODHI ROAD, BHAWAN, CIVIC NEW DELHI- 110 003 CENTRE, (PAN: AAATR6664D) NEW DELHI 2 (APPELLANT) (RESPONDENT) ASSESSEE BY : SH. S.D. KAPILA & SH. SAN JAY KUMAR, ADV. REVENUE BY : SH. T. VASANTHAN, SR. DR ORDER THIS APPEAL HAS BEEN FILED BY THE ASSESSEE AGAINS T THE ORDER DATED 07.3.2014 OF THE LD. COMMISSIONER OF INCOME T AX (APPEALS)-XXI, NEW DELHI RELEVANT TO ASSESSMENT YEA R 2010-11. 2. THE GROUNDS RAISED IN THE APPEAL READ AS UNDER:- THAT ON THE FACTS AND IN THE CIRCUMSTANCES OF THE C ASE:- 1. THE ORDER OF THE LEARNED ASSESSING OFFICER IS BAD B OTH IN LAW AND ON THE FACTS OF THE CASE. 2. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN SUSTAINING THE ACTION OF THE LEARNED ASSESSING OFFI CER IN DETERMINING 'NET TAXABLE INCOME' OF RS. 21,00,000. 2 3 THE LEARNED ASSESSING OFFICER ERRED IN HOLDING T HAT THE ASSESSEE FAILED TO PRODUCE ANY DOCUMENTARY PROOF FO R EXPENDITURE OF RS. 21,00,000 ON THE SPECIFIC PURPOS E OF RESEARCH ACTIVITY FOR WHICH IT WAS ACCUMULATED . 4. THE LEARNED ASSESSING OFFICER ERRED IN MAKING A N ADDITION OF RS. 21,00,000 TO THE RETURNED INCOME HOLDING THAT T HE AMOUNT ACCUMULATED UNDER SECTION 11 (2) OF THE INCOME TAX ACT, 1961 OUT OF INCOME FOR THE FINANCIAL YEAR 2003-04 WAS NO T UTILISED UP TO THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEA R 2010-11 . 5 THE LEARNED ASSESSING OFFICER ERRED IN CHARGING INTEREST ULS 234C WITHOUT AUTHORITY UNDER THE ACT. 6. THE ORDER OF 'THE LEARNED COMMISSIONER OF INCO ME TAX' (APPEALS) SUFFERS FROM PLETHORA OF ERRORS INCLUDING INCORRECT REFERENCE TO SECTIONS OF THE INCOME TAX ACT, QUOTI NG INCORRECT. FORM NO. AND INCORRECT APPLICATION OF THE RELEVANT PROVISIONS. 7. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN HOLDING THAT THE ACCUMULATION OF RS. 21,00,000 OUT OF INCOME. FOR THE ASSESSMENT YEAR 2004-05 WAS REQUIRED TO BE APPLIED WITHIN FIVE YEARS I.E. UP TO ASSESSMENT YEAR 2009-1 0. 8. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS ) ERRED IN' HOLDING THAT THE ACCUMULATION OF RS. 21,00,000 OUT OF INCOME FOR THE FINANCIAL YEAR 2003-04 WAS WITHOUT ANY SPEC IFIC PURPOSE, ILLEGAL AND NOT ALLOWABLE. 3 9. THE LEARNED COMMISSIONER OF INCOME TAX (APPEALS) ERRED IN NOT PROVIDING ANY OPPORTUNITY OF BEING HEARD WHILE HOLDING THAT THE THAT THE ACCUMULATION OF RS. 21,00,000/- OUT O F INCOME FOR THE FINANCIAL YEAR 2003-04 WAS WITHOUT ANY SPECIFIC PURPOSE, ILLEGAL AND NOT ALLOWABLE AS THERE WERE NO SUCH FIN DINGS IN THE ASSESSMENT ORDER. 10. THE LEARNED COMMISSIONER OF INCOME TAX (APPEAL S) ERRED IN SUMMARILY DISMISSING THE APPEAL OF THE ASSESSEE: 11. THE APPELLANT; CRAVES LEAVE TO ADD, ALTER, AME ND AND MODIFY OR FORGO ANY OF THE GROUNDS AT THE TIME OF HEARING. 12. THAT THE ABOVE GROUNDS ARE WITHOUT PREJUDICE T O EACH OTHER. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E FILED ITS RETURN DECLARING NIL INCOME ON 30.9.2010 ALONGWITH AUDIT REPORT DATED 30.9.2009. THE RETURN OF THE ASSESSEE WAS PRO CESSED BY THE AO U/S. 143(1) OF THE INCOME TAX ACT, 1961 (HEREINA FTER REFERRED AS THE ACT) AND LATER ON THE AO SELECTED THE CASE OF A SSESSEE FOR SCRUTINY BY ISSUING THE STATUTORY NOTICES. THE AR OF THE ASSESSEE APPEARED BEFORE THE AO AND FILED THE REQUISITE DETA ILS WHICH WAS EXAMINED BY THE AO AND HE FOUND THAT THERE IS ACCUM ULATION. AS PER AO, THE ASSESSEE HAS ACCUMULATION FUND U/S. 11(2) OF THE ACT OF THE FINANCIAL YEAR 2003-04 OF RS. 21 LACS. THE AO ISS UED SHOW CAUSE NOTICE DATED 30.1.2013 TO THE ASSESSEE ASKING TO EX PLAIN WHY THE ACCUMULATED INCOME U/S. 11(2) OF THE ACT FOR THE FI NANCIAL YEAR 2003- 4 04 OF RS. 21 LACS SHOULD NOT BE TAXED, AS THE SAME HAS NOT BEEN UTILIZED TILL 2009-10 AND THE TIME PERIOD HAS EXPIR ED. IN RESPONSE TO THE SAME, THE ASSESSEE VIDE ITS LETTER DATED 5.2.20 13 HAS GIVEN HIS RELY WHICH THE AO HAS REPRODUCED AT PAGE NO. 1 TO 4 OF THE ASSESSMENT ORDER. AFTER EXAMINING THE REPLY FILED B Y THE ASSESSEE, THE AO DID NOT AGREE WITH THE REPLY FILED BY THE AS SESSEE AND HELD THAT ASSESSEE FAILED TO PRODUCE ANY DOCUMENTARY PRO OF FOR EXPENDITURE OF RS. 21 LACS ON SPECIFIC PURPOSE OF SUCH ACTIVITIES FOR WHICH IT WAS ACCUMULATED AND HE TAXED THE AMOUNT IN DISPUTE FOR THE FINANCIAL YEAR 2009-10 I.E. ASSESSMENT YEAR 2010-11 AND COMPLETED THE ASSESSMENT ON 26.2.2013 U/S. 143(3) OF THE ACT . AGGRIEVED BY THE ASSESSMENT ORDER DATED 26.2.2013 ASSESSEE FILED APPEAL BEFORE THE LD. CIT(A), WHO VIDE HIS IMPUGNED ORDER DATED 7 .3.2014 DISMISSED THE APPEAL OF THE ASSESSE. NOW THE ASSES SEE IS AGGRIEVED AGAINST THE IMPUGNED ORDER AND FILE THE PRESENT APP EAL BEFORE THE TRIBUNAL. 4. AT THE TIME OF HEARING, LD. COUNSEL OF THE ASSE SSEE STATED THAT DURING THE CURRENT YEAR, THE ASSESSEE HAS RECEIVED A SUM OF RS. 4,74,75,182/- WHICH IS MAINLY FOR THE GRANTS RECEIV ED FROM THE MINISTRY OF EXTERNAL AFFAIRS AND OTHER MINISTRIES A ND HAS INCURRED THE EXPENDITURE OF RS. 4,77,78,369/- AND AS SUCH THERE IS EXCESS EXPENDITURE OF RS. 3,03,181/-. HE FURTHER SUBMITTE D THAT ACCUMULATED INCOME OF AY 2004-05 OF RS. 21 LACS HA S BEEN SPENT DURING THE CURRENT YEAR AND THE SAME IS ELIGIBLE FOR STANDARD 5 DEDUCTION/ STANDARD ACCUMULATIONS @15% FROM THE CUR RENT YEAR INCOME U/S. 11(1)(A) OF THE ACT. THEREFORE, HE REQU ESTED THAT EARLIER ACCUMULATED INCOME HAS BEEN SPENT IN THE CURRENT YE AR AND AS SUCH THE AO AS WELL AS LD. CIT(A) ARE NOT JUSTIFIED TO M AKE THE ADDITION AND AFFIRMING THE SAME, HENCE, HE REQUESTED THAT TH E SAME MAY BE DELETED. IN SUPPORT OF HIS CONTENTION, HE HAS FILED A SMALL PAPER BOOK CONTAINING PAGES 1 TO 37 IN WHICH HE HAS ATTACHED T HE COPY OF THE WRITTEN SUBMISSION FILED BEFORE THE LD. CIT(A); MEM ORANDUM OF ASSOCIATION AND RULES; COPY OF TAX COMPUTATION AN D AUDIT REPORT IN FORM 10BB; APPLICATION IN FORM 10 FILED ALONGWITH T AX RETURN FOR AY 2004-05; REPLY TO SHOW CAUSE NOTICE DATED 5.2.2013; COPY OF DECISION IN THE CASE OF CIT VS. HOTEL & RESTAURANT ASSOCIATION (2003) 261 ITR 190 (DEL); DIT(E) VS. DAULAT RAM EDU CATION SOCIETY 278 ITR 260 (DEL.). 5. ON THE CONTRARY, LD. DR RELIED UPON THE ORDERS OF THE AUTHORITIES BELOW. 6. I HAVE HEARD BOTH THE PARTIES AND PERUSED THE RECORDS, ESPECIALLY THE ORDERS OF THE AUTHORITIES BELOW AND I AM OF THE VIEW THAT IT IS AN ADMITTED THAT ASSESSEE IS REGISTERED UNDER THE SOC IETIES REGISTRATION ACT, 1860 AND IS ALSO REGISTERED U/S. 12A OF THE IN COME TAX ACT, 1961A AND ASSESSEE SOCIETY IS ALSO EXEMPTED U/S. 1 0(23)(C)(IV) OF THE ACT AS WELL AS THE ALSO BEING NOTIFIED U/S. 80G (5)(VI) OF THE ACT. DURING THE COURSE OF ASSESSMENT PROCEEDINGS, THE AO FOUND THAT ASSESSEE HAS ACCUMULATED FUND U/S. 11(2) OF THE ACT FOR THE FY 6 2003-04 OF RS. 21 LACS. THE SHOW CAUSE NOTICE DATED 30.1.2013 WAS ISSUED TO THE ASSESSEE ASKING THEREIN TO EXPLAIN WH Y THE ACCUMULATED INCOME U/S. 11(2) OF THE ACT OF FY 2003-04 SHOULD N OT BE TAXED AS INCOME. IN RESPONSE TO THE SHOW CAUSE NOTICE DATE D 30.1.2013, ASSESSEE FILED ITS REPLY LETTER DATED 5.2.2013 MAIN LY STATING THEREIN THAT THE ASSESSEE IS A NON-PROFIT MAKING SOCIETY AN D REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860 AS WELL AS UNDER SECTION 12A OF THE INCOME TAX ACT, 1961. ASSESSEE FURTHER S TATED THAT AS PER FORM NO. 10, ASSESSEE SUBMITTED ALONGWITH RETURN OF INCOME FOR AY 2004-05 RS. 21 LACS WAS ACCUMULATED U/S. 11(2) OF T HE ACT TO CARRY OUT THE RESEARCH ACTIVITY AS ENVISAGED IN THE MEMOR ANDUM OF ASSOCIATION AND RULES OF THE (RIS) SOCIETY. FOR THE SAKE OF CONVENIENCE, THE REPLY DATED 5.2.2013 FILED BY THE ASSESSEE, IN RESPONSE TO THE SHOW CAUSE NOTICE DATED 3.1.2013 IS REPRODUCED AS UNDER:- 'OUR EXPLANATION AS TO WHY THE AMOUNT OF RS. 21,00,000 ACCUMULATED U/S 11(2) OF THE INCOME TAX ACT,1961 OUT OF INCOME FOR THE FINANCIAL YEAR 2003-04 SHOULD NOT BE TAXED IN THE ASSESSMENT YEAR 2010-11 IS AS UNDER:- 1. RIS IS A NON-PROFIT MAKING SOCIETY REGISTERED UNDER THE SOCIETY REGISTRATION ACT, 1860. RIS, AN AUTONOMOUS THINK-TANK UNDER THE AEGIS OF GOVERNMENT OF INDIA, MINISTRY OF . EXTERNAL AFFAIRS , 7 IS AN ORGANIZATION THAT SPECIALIZES IN POLICY RESEARCH AN INTERNATIONAL ECONOMIC ISSUES AND DEVELOPMENT COOPERATION. 2. RIS IS REGISTERED UNDER SECTION12A(A) OF THE ACT VIDE ORDER DATED NOVEMBER 28.1.986. RIS ENJOYS EXEMPTION UNDER SECTION 10(23C)(IV) OF THE ACT. 3. AS PER THE FORM NO. 10 SUBMITTED ALONG WITH THE RETURN OF INCOME FOR THE ASSESSMENT YEAR 2004- 05, RS. 21,00,000/- WAS ACCUMULATED UNDER SECTION 11(2) OF THE ACT TO CARRY OUT RESEARCH ACTIVITY AS ENVISAGED IN THE MEMORANDUM OF ASSOCIATION AND RULES OF RLS. COPY OF THE FORM NO. 10 IS ATTACHED AS [ANNEX'1'} HEREWITH FOR YOUR READY REFERENCE. 4. FOLLOWING ARE THE MAIN OBJECTIVES OF RIS AS PER MEMORANDUM OF ASSOCIATION AND RULES: A} TO PROMOTE THE CONCEPT OF SELF-RELIANCE AMONG THE NON-ALIGNED AND OTHER DEVELOPING' COUNTRIES AND TO FORGE AND MAINTAIN A SYSTEM OF EFFECTIVE LINKS AMONGST THE VARIOUS RESEARCH INSTITUTIONS OF THESE COUNTRIES WITH A VIEW TO UTILIZE THEIR RESEAR CH CAPABILITIES OR THE MAXIMUM COMMON BENEFITS; B) TO UNDERTAKEN AND/ OR COMMISSION ANALYTICAL STUDIES, TO EVALUATE AND INTERPRET INFORMATION AND 8 DATA. TO CONDUCT OR CAUSE TO CONDUCT RESEARCH IN CURRENT TRENDS AND FUTURE PROJECTION CONCERNING SOCIAL, ECONOMIC, SCIENTIFIC AND TECHNOLOGICAL MATTERS ON A GLOBAL AND REGIONAL BASIS AS APPROPRIATE; C) TO DISSEMINATE FACTUAL INFORMATION AND DATA RELATING TO DIVERSE ASPECTS SUCH AS TRADE, INDUSTRIALIZATION, FINANCE, ENERGY, RAW MATERIALS, TECHNOLOGY TRANSFER, EDUCATION, HEALTH, ETC. IN SUC H FROM AND MANNER AS BEST CALCULATED TO STRENGTHEN THE UNIFIED POSITION AND APPROACH OF THE NON- ALIGNED AND OTHER DEVELOPING COUNTRIES; D) TO SERVE AS A NATIONAL-FOCAL FOR CO-ORDINARY OF RESEARCH ACTIVITIES AMONG THE NON-ALIGNED AND OTHER DEVELOPING COUNTRIES AND TO THIS END ORGANIZE CONFERENCE, MEETING SEMINARS AND WORKSHOPS AS APPROPRIATE; E) TO SERVE AND EFFECTIVELY FUNCTION ON A CONTINUOUS BASIS AS A DATA BANK/INFORMATION STORAGE, PROCESSING AND RETRIEVAL CENTRE, ON GLOBAL AND , REGIONAL PROBLEMS BEARING ON THE INTEREST OF NON-ALIGNED AND OTHER DEVELOPING COUNTRIES; 9 F) TO, PROMOTE RESEARCH STUDIES BEARING ON COOPERATION AMONG NON-ALIGNED AND OTHER DEVELOPING COUNTIES TO ECONOMIC, SCIENTIFIC, TECHNOLOGICAL AND RELATED AREAS; G) TO ADVISE THE GOVERNMENT OF INDIA ON ALL MATTERS PERTAINING TO MULTILATERAL ECONOMIC AND SOCIAL ISSUES, AS MAY BE REFERRED TO IT FROM TIME T O TIME, INCLUDING COLLABORATIVE ARRANGEMENTS WITH OTHER NON-ALIGNED AND DEVELOPING COUNTRIES; H) TO GIVE GRANTS FOR PUBLICATIONS FOR RESEARCH' UNDERTAKEN BY RIS AND FOR PERIODICALS AND JOURNALS DEVOTED TO SUCH RESEARCH; AND I) TO UNDERTAKEN ALL SUCH OTHER ACTIVITIES AS ARE INCIDENTAL TO NECESSARY FOR OR CONDUCIVE TO ACHIEVING ALL OR ANY OF THE ABOVE OBJECTIVES. 5. RIS IS CONTINUOUSLY ENGAGED IN RESEARCH ACTIVITIES AS ENVISAGED IN THE MEMORANDUM OF ASSOCIATION AND RULES AND UTILIZING THE FUNDS FOR SUCH ACTIVITIES. THE FUNDS AVAILABLE WITH RIS I.E. PAST ACCUMULATIONS AND YEARLY INCOME ARE USED FOR ITS RESEARCH ACTIVITIES. . 6. DURING THE PREVIOUS YEAR RELEVANT TO 'THE ASSESSMENT YEAR 2010-11, RIS UTILIZED RS. 4,77,78,363 FOR ITS ACTIVITIES . WHEREAS TOTAL 10 INCOME OF RIS FOR THE PREVIOUS YEAR RELEVANT OF THE ASSESSMENT YEAR 2010-11 WAS RS. 4,74,75,182. 7. IT IS APPARENT FROM THE ABOVE THAT RLS HAS UTILIZED SOME OF THE FUNDS OF PAST ACCUMULATIONS DURING THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR 2010-11. 8. AS PER PROVISIONS OF SECTION 10(23C(IV) OF THE ACT, AFTER SETTING APART RS. 18,00,000/- I.E. AMOUNT BEING LES THAN 15% OF THE INCOME OF THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR 2010-11, INCOME AVAILABLE FOR UTILIZATION WAS RS. 4,56,75,182/-. WHEREAS RS. 4,77,78,363/- WAS UTILIZED DURING THE YEAR. 9. HENCE IT MAY NOT BE PRE TO STATE THAT THE PAST ACCUMULATIONS HAVE NOT BEEN UTILIZED. 10. IT IS PRAYED THAT THE ACCUMULATION OUT OF THE INCOME FOR THE PREVIOUS YEAR RELEVANT TO , THE ASSESSMENT YEAR 2004-05 MAY PLEASE BE TREATED AS UTILIZED DURING THE PREVIOUS YEAR RELEVANT TO TH E ASSESSMENT YEAR 2010-11 FOR THE PURPOSE MENTIONED IN THE FORM NO. 10 FILED ALONG WITH THE RETURN 6F INCOME FOR THE ASSESSMENT YEAR 2004- 05 AND THAT ACCUMULATION SHOULD NOT BE TAXED AS 11 INCOME OF THE PREVIOUS YEAR RELEVANT TO THE ASSESSMENT YEAR 2010-11. 6.1 AFTER EXAMINING THE AFORESAID REPLY OF THE ASS ESSEE, THE AO HAS REJECTED THE REQUEST OF THE ASSESSEE ON THE GROUND THAT ASSESSEE HAS FAILED TO PRODUCE ANY DOCUMENTARY PROOF FOR EXPEN DITURE OF RS. 21 LACS ON SPECIFIC PURPOSE OF RESEARCH ACTIVITY FOR W HICH IT HAS BEEN ACCUMULATED. SIMILARLY, THE LD. FIRST APPELLATE AU THORITY HAS ALSO UPHELD THE ORDER OF THE AO BY HOLDING THAT ASSESSEE IS REQUIRED TO FILE FORM NO. 10B AS PER RULE 17 TO THE AO, BUT IN THE F ORM NO. 10B FILED BY THE ASSESSEE, NO SPECIFIC PURPOSE HAS BEEN SPEC IFIED BY THE ASSESSEE FOR ADDITIONAL ACCUMULATION OF INCOME U/S. 11(2)(A) OF THE ACT AND ASSESSEE HAS MERELY CARRY FORWARD THE INCOM E OF ASSESSMENT YEAR 2005-06 TO THE CURRENT YEAR 2010-11 AND EVEN IN THE CURRENT YEAR THE ACCUMULATED INCOME HAS NOT BE EN APPLIED FOR BY ANY SPECIFIC PURPOSE. I HAVE ALSO PERUSED THE ORDERS OF THE AO AS WELL AS LD. CIT(A) ALONGWITH DOCUMENTARY EVIDEN CES FILED BY THE ASSESSEE IN THE SHAPE OF PAPER BOOK CONTAINING PAGE S 1 TO 37 IN WHICH THE ASSESSEE HAS ATTACHED THE COPY OF THE WR ITTEN SUBMISSION FILED BEFORE THE LD. CIT(A); MEMORANDUM OF ASSOCIAT ION AND RULES; COPY OF TAX COMPUTATION AND AUDIT REPORT IN FORM 10BB; APPLICATION IN FORM 10 FILED ALONGWITH TAX RETURN F OR AY 2004-05; REPLY TO SHOW CAUSE NOTICE DATED 5.2.2013; COPY OF DECISION IN THE CASE OF CIT VS. HOTEL & RESTAURANT ASSOCIATION (2 003) 261 ITR 190 12 (DEL); DIT(E) VS. DAULAT RAM EDUCATION SOCIETY 278 ITR 260 (DEL.). LD. COUNSEL OF THE ASSESSEE DRAW MY ATTENTION TOWAR DS THE PAGE NO. 30 OF THE PAPER BOOK WHICH IS THE COPY OF FORM NO. 10 FILED BY THE ASSESSEE ALONGWITH RETURN BEFORE THE AO. FOR THE SAKE OF CONVENIENCE, WE ARE REPRODUCING THE CONTENTS OF THE SAID FORM NO. 10 AS UNDER:- FORM NO.10 (SEE RULE 17) .TO THE ASSESSING OFFICER/PRESCRIBED AUTHORITY UNDER SECTION 11(2) OF THE INCOME TAX ACT, 1961. TO ASSESSING OFFICER/PRESCRIBED AUTHORITY TRUST WARD MAYUR BHAVAN NEW DELHI I. I, NAGESH KUMAR, DIRECTOR GENERAL, RIS ON BEHALF OF RESEARCH AND INFORMATION SYSTEM FOR THE NON-ALIGNED AND OTHER DEVELOPING COUNTRIES (RLS), HEREBY BRING TO YOUR NOTICE THAT IT HAS BEEN DECIDED BY A RESOLUTION PASSED BY THE RIS GOVERNING COUNCIL MEMBERS ON 26'H JUNE 2003 (AND ALSO ON FEBRUARY 7, 1989) (COPY ENCLOSED) 13 THAT, OUT OF THE INCOME OF THE RIS FOR THE PREVIOUS YEARS), RELEVANT TO THE ASSESSMENT YEAR 2004-2005 AND SUBSEQUENT 2009-2010 PREVIOUS YEARS), AN AMOUNT OF RS.21,00,000/- OF THE INCOME OF THE RIS AS IS AVAILABLE AT THE END OF THE PREVIOUS YEAR SHOULD BE ACCUMULATED OR SET APART TILL THE PREVIOU S YEAR(S) ENDING 2009 IN ORDER TO ENABLE 'THE RIS GOVERNING COUNCIL TO ACCUMULATE SUFFICIENT FUNDS FOR CARRYING OUT THE FOLLOWING PURPOSES:- I) CARRY OUT RESEARCH ACTIVITY AS ENVISAGED IN THE MEMORANDUM OF ASSOCIATION AND RULES OF RIS. 2. BEFORE EXPIRY OF SIX MONTHS COMMENCING FROM THE END OF EACH PREVIOUS YEAR, THE AMOUNT SO ACCUMULATED OR SET APART WILL BE. INVESTED OR DEPOSITED IN ANYONE OR MORE OF THE FORMS OF MODE SPECIFIED IN SUB-SECTION (5) OF SECTION 11. 3. COPIES OF THE ANNUAL ACCOUNTS OF THE RIS .ALONG WITH DETAILS OF INVESTMENT (INCLUDING DEPOSITS) AND UTILIZATION, IF ANY, OF THE MONEY SO ACCUMULATED OR SET APART WILL BE FURNISHED TO YOU BEFORE THE EXPIRY OF SIX MONTHS COMMENCING FROM THE END OF EACH RELEVANT PREVIOUS YEAR. 14 4. IT IS REQUESTED THAT IN VIEW OF OUR COMPLYING WITH THE CONDITIONS LAID DOWN IN SECTION 11(2) OF THE INCOME TAX ACT, 1961, THE BENEFIT OF THAT SECTION MAY BE GIVEN IN THE ASSESSMENTS OF THE RIS/EXEMPTING THE INCOME IN RESPECT OF THE RIS IN RESPECT OF THE INCOMES ACCUMULATED OR SET APART AS MENTIONED ABOVE. SIGNATURE SD/- DR. NAGESH KUMAR DIRECTOR GENERAL, RESEARCH AND INFORMATION SYSTEM FOR THE NON-ALIGNED AND OTHER DEVELOPING COUNTRIES NEW DELHI 6.2 AFTER PERUSING THE ABOVE CONTENTION OF THE ASSE SSEE-SOCIETY, I AM OF THE CONSIDERED VIEW THAT IN THE INTEREST OF JUSTICE, THE MATTER REQUIRES VERIFICATION OF THE CONTENTIONS RAISED BY THE ASSESSEE BEFORE THE REVENUE AUTHORITIES AS WELL AS BEFORE ME I.E. ABOUT THE UTILIZATION OF ACCUMULATED INCOME IN DISPUTE FOR THE PURPOSE OF ESTABLISHING ITS PLEA BEFORE THE AO AND AO IS AT LIBERTY TO DECIDE T HE ISSUE IN DISPUTE, AFTER VERIFICATION OF THE SAME, AS PER LAW AFTER G IVING ADEQUATE OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 15 7. IN THE RESULT, THE ASSESSEES APPEAL IS ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THIS 23-08-2017. SD/- (H.S. SIDHU) JUDICIAL MEMBER DATED : 23-08-2017 SR BHATANGAR COPY FORWARDED TO: 1.APPELLANT 2.RESPONDENT 3.CIT 4.CIT(A), NEW DELHI. 5.CIT(ITAT), NEW DELHI. AR, ITAT NEW DELHI.