Accumulation Income can be applied towards Acquisition of Fixed Assets u/s 11(6) of Income Tax: ITAT

The ITAT ruled that income accumulated under Section 11(6) of the Income Tax Act can be applied toward the acquisition of fixed assets. The case involved a charitable trust that had accumulated income and sought to use it for purchasing fixed assets. The tax department challenged this, arguing that the income should have been spent within the specified time frame. However, the tribunal held that using accumulated income for acquiring fixed assets is a valid application of funds under Section 11, thereby supporting the trust’s position. This ruling clarifies the permissible uses of accumulated income for charitable entities.