My organization is a registered trust u/s 12AA of Income Tax. On 31st March 21 , we have given some advance to our vendor for booking media in newspaper and in other modes for FY 21-22. This is covered under the objective of the Trust. Now my query is whether we can claim those advances as utilization from the accumulation set aside u/s 11(2) of the Income Tax Act. The purpose of accumulation was satisfied with this advance release. So no issues with the condition laid down to fulfill the purpose of accumulation.
If we don't consider those advance as utilization, then our accumulation set aside in FY 2015-16 was unspent and we are liable to pay tax thereon.
CAclubindia
