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2017 (12) TMI 194 - ITAT BANGALOREDepreciation on assets as taken into account for application for the purpose of Section 11(1)(a) - double deduction - The first issue regarding allowability of depreciation on the assets which was considered as application of income in the earlier year, this issue is covered in favour of the assessee by the Tribunal order rendered in the case of DDIT(E) Vs. Karnataka Jesuit Educational Society (2016 (9) TMI 1046 - ITAT BANGALORE ) in which the Tribunal has followed the judgment of Hon'ble Karnataka High Court rendered in the case of DIT Vs. Al-Ameen Charitable Fund Trust (2016 (3) TMI 462 - KARNATAKA HIGH COURT) and several other Tribunal orders and hence, respectfully following these judicial pronouncements, we decide this issue in favour of the assessee and accordingly, the ground raised by the revenue in this regard is rejected. Carry forward of deficit - Held that:- We find that this issue is also covered in favour of the assessee by the Tribunal order rendered in the case of Jyothi Seva Society of Bangalore Vs. ADIT(E)(2015 (11) TMI 1270 - ITAT BANGALORE) wherein held The concept of application of the income for the year in which the income has arisen is not found in Section 11(1)(a) of the Act. No limitation to the above effect is found in the language of the section. It merely requires application of the income that has arisen from the property held under trust. In this view of the matter, the principles relating to set off of losses, etc. is not of any relevance and therefore any excess application of income during the year can be regarded as application of the income of future years and can be adjusted. Therefore, in our view, the claim of the assessee for carry forward of excess application is in accordance with the judicial precedents on the issue and the same is allowable.
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