18 February 2017
I know that 11(5) is applicable for 11(2) conditional accumulation. But should a trust invest the 15% accumulation also in 11(5) specified investments? If yes pls quote any case laws/ notifications/ references.
20 February 2017
sir then what about Section 13(l)(d) which provides that the benefits of tax exemption u/s 11 or section 12 shall not be available to a trust if any funds of the trust are invested or deposited in a mode other than that provided u/s 11(5) of the Act.??
20 February 2017
sir then why did the tribunal decide that 11(5) is not applicable for upto 15% accumulation in the below cases. Pls refer below links : https://indiankanoon.org/doc/199132717/ https://indiankanoon.org/doc/1875615/
the 1st link there are multiple areas of appeal. So I'm giving you the extract of judgment : You can also find the below text in the link : "vi) It was further reiterated that since the appellant had fulfilled the basic condition of applying more than 85% of its income as per section 11(2) he did not fall within the mischief of section 13(l)(d). When some amount was invested out of the balance income of less than 15% over which no conditions were imposed in the statute for accumulation in any form. The only condition to be fulfilled was that no amount can be utilized for the benefit of any of the trustees or founder, manager etc. Since there is no such allegation against the appellant, relief was sought. "
21 February 2017
The decision is based on the view that, provisions of section 13(l)(d) would be attracted only when the investment was made otherwise than in any one or more of the forms or modes specified in section 11(5) of IT Act, 1961. The provisions of section 11(5) are applicable only for investment or deposit of money referred to in clause (b) of sub-section (2) of section 11.