TMI Blog2014 (6) TMI 432X X X X Extracts X X X X X X X X Extracts X X X X ..... ice before the Hon’ble High Court – Decided against Revenue. Allowability of carry forward of unabsorbed depreciation – Held that:- Following CIT vs. Shri Plot Swetamber Murti Pujak Jain Mandal [1993 (11) TMI 17 - GUJARAT High Court] - the income derived from the trust property has to be computed on commercial principles and if commercial principles are applied, then adjustment of expenses incurred by the trust for charitable and religious purposes in the earlier years against the income earned by the trust in the subsequent year, will have to be regarded as application of income of the trust in the subsequent year in which adjustment has been made - Decided against Revenue. - ITA No. 5914/M/2012 - - - Dated:- 30-5-2014 - Shri Sanj ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arity Commissioner, Mumbai and was also granted registration under section 12A by the DIT(E), Mumbai, as its objects were falling within charitable activities as defined under section 2(15). The Assessing Officer noted that the assessee trust had changed its objects vide its application filed before Charity Commissioner, who has allowed the necessary changes in the objects of the assessee trust. In view of this change of objects, the registration so granted earlier was withdrawn vide order dated 02.02.11 by DIT (E) passed under section 12AA(3). 2.1 Aggrieved by the said order, the assessee trust had preferred an appeal before the ITAT, wherein the ITAT allowed the assessee s appeal and the cancellation of registration was set aside. Thus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of denying the benefit under section 11 ceases to exist. Once the registration under section 12A continues, then, it is axiomatic that the income has to be computed in accordance with section 11 and benefit/exemption therein has to be given. The exemption cannot be denied simply on the ground that the matter is subjudice before the Hon ble High Court. Thus, we do not find any merits in the ground No.1 raised by the department and the same is accordingly dismissed. 6. In ground No.2 the department has challenged the direction of the ld. CIT(A) for allowing the claim of the assessee for carry forward of unabsorbed depreciation and deficit of current and earlier years amounting to Rs.23,94,22,334/- to be adjusted against the income of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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