TMI Blog2010 (8) TMI 657X X X X Extracts X X X X X X X X Extracts X X X X ..... ils furnished by the assessee in the Application Form No.10-G of the Income Tax Act, would show that the percentage of income applied is less than 85% - Therefore, the appeal is allowed in part with a direction to the Income Tax Appellate Tribunal to consider the issue as to whether after adjusting the excess expenditure incurred by the assessee on charitable purpose as claimed by it in the Application Form 10-G of the Income Tax Act, is more than 85% for the assessment years 2006-07 and 2008-09, for the purpose of granting exemption under Section 80-G of the Income Tax Act. - 796 of 2010 - - - Dated:- 16-8-2010 - Mr. JUSTICE F.M.IBRAHIM KALIFULLA, Mr. JUSTICE M.M.SUNDRESH, JJ. For appellant : Mr.K.Subramaniam. For respondent ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee has not spent at least 85% of its income for the relevant assessment years viz. 2006-07 and 2008-09. The Commissioner of Income Tax has also held that the assessee cannot seek to set off excess expenditure incurred for the earlier years against the deficiency for the subsequent years under Section 11 of the Income Tax Act. Challenging the said order of the Commissioner of Income Tax, the assessee has filed an appeal to the Income Tax Appellate Tribunal and the said Tribunal has allowed the appeal by holding that the assessee is entitled to set off the excess expenditure incurred for the earlier years against the deficiency for the subsequent years. While allowing the appeal, the Income Tax Appellate Tribunal has also observed that it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urposes in the earlier years, the expenditure is more than 85% for the relevant years. 5. Even a perusal of the details furnished by the assessee in the Application Form No.10-G of the Income Tax Act, would show that the percentage of income applied is less than 85%. Therefore, the Income Tax Appellate Tribunal has committed a factual error when it is not the case of the assessee itself in holding that for the assessment years 2006-07 and 2008-09 the expenditure incurred by the assessee on charitable purposes is more than 85%. Inasmuch as the Income Tax Appellate Tribunal has already remanded the case for fresh consideration, we are of the opinion that considering the materials available on record, the Commissioner of Income Tax will al ..... X X X X Extracts X X X X X X X X Extracts X X X X
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