आयकर अपीलीय अधिकरण, कटक IN THE INCOME TAX APPELLATE TRIBUNAL CUTTACK BENCH CUTTACK BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI MADHUSUDAN SAWDIA, ACCOUNTANT MEMBER No.450/CTK/2025 आयकर अपील सं/ITA रोक आवेदन सं/SA No.6/CTK/2025 (Arising out of ITA No.450/CTK/2025)

( नििाारण वर् ा / Assessment Year : 2018-2019)

Dinabandhu Foundation for Vs Additional/Joint/Deputy/Assistant Educational Research & Socio Commissioner/Income Tax Economic Development, Officer/NFAC, Delhi A/127, Saheed Nagar, Bhubaneswar-751007 PAN No. :AAATD 7338 L ..

( अपीलार्थी /Appellant) ( प्रत्यर्थी / Respondent)

: Shri Dilip Kumar Mohanty, Advocate नििााररती की ओर से

/Assessee by & Shri Pradyumna Kumar Sahu, Advocate राजस्व की ओर से

/Revenue by : Shri Ashim Kumar Chakraborty, CIT-DR : 20/02/2026 सुनवाई की तारीख / Date of Hearing घोषणा की

तारीख/Date of Pronouncement : 20/02/2026 आदेश / O R D E R Per Bench :

The assessee has filed Stay Application along with appeal in ITA No.450/CTK/2025 for the assessment year 2018-2019 against the order dated 21.07.2025 passed by the ld. CIT(A), National Faceless Appeal Centre (NFAC), Delhi, thereby disallowing the exemption claimed by the assessee trust u/s.11(2) of the Act on the ground that the purpose mentioned in Form No.10 was too vague and lacked the required specificity. 2. It was submitted by the Ld.AR that the assessee had during the impugned assessment year filed its form no.10 which reads as follows:-

3. It was submission that in the Form No.10 the purpose for which the amount was being accumulated or set apart was reported as “purpose of the trust”. It was the submission that the AO held that the Form No.10 where it is mentioned that the “purpose of the trust” was not clear and there was no specific object mentioned by the assessee for accumulation and, therefore, denied the assessee the benefit of the accumulation and brought to tax the Rs.15 crores, which had been accumulated. It was submission that the accumulation had been initially started during the assessment year 2009-10 and the assessment year 2018-19 was the last year of the said accumulation. It was submission that the Hon’ble Gujarat High Court in the case of CIT Vs. Bochasanwasi Shri Akshar Purshottam Public Charitable Trust in Tax Appeal No.1260 and 1261 of the 2018, had under similar circumstances held that the assessee having made a clear statement of setting out the purpose for which income was being set apart, the disallowances of the accumulation was not permissible. The said decision of the Hon’ble Gujarat High Court is reported in 409 ITR 591 (Gujarat-HC) and the relevant observations of the Hon’ble High Courts reads as follows:-

IT : Lack of declaration in Form No. 10 regarding specific purpose for which funds were being accumulated by assessee-trust, would not be fatal to exemption claimed under section 11(2)

■■■

[2019] 102 taxmann.com 122 (Gujarat)

HIGH COURT OF GUJARAT Commissioner of Income-tax (Exemptions)

v.

Bochasanwasi Shri Akshar Purshottam Public Charitable Trust *

Akil Kureshi AND B.N. Karia, JJ R/Tax Appeal Nos. 1260 & 1261 of 2018 OCTOBER 15, 2018 Section 11 of the Income-tax Act, 1961 - Charitable or religious trust - Exemption of income from property held under (Accumulation of fund) - Assessment year 2008-09 - Whether lack of declaration in Form No. 10 regarding specific purpose for which funds were being accumulated by assessee-trust, would not be fatal to exemption claimed under section 11(2) -

Held, yes - Whether, therefore, where pursuant to enquiry raised by Assessing Officer, assessee passed a formal resolution specifying that funds were set apart for ongoing hospital projects of trust and for modernization of existing hospitals, it was to be regarded as sufficient compliance of requirements of Act and, thus, assessee's claim for exemption under section 11(2) in respect of funds accumulated was to be allowed - Held, yes [Para 8] [In favour of assessee]

FACTS The assessee was a public charitable trust. For the releva