Accumulated Income of Trust is taxable in the year of Sec.13 Violation

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HIGH COURT OF DELHI

Escorts Heart Institute & Research Centre

v.

Commissioner of Income-tax, Centre

W.P.(C) NO. 11909 OF 2005

DECEMBER 14, 2012

 

Section 11(3), which is made applicable to section 10(21), itself provides that the entire accumulated income shall be deemed to be the income of the assessee of the previous year in which the breach of the conditions or the contingency occurs. The statute having thus fixed the assessment year in which the entire past accumulated income falls to be taxed, it is impermissible in law for the Assessing Officer to entertain a reason to believe that income chargeable to tax for the assessment years 1998-99 to 2000-01 had escaped assessment.