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2015 (7) TMI 1119 - AT - Income TaxDenial of carry forward of the excess application of income to be set off against the ‘income from property’ held under trust in the future - Held that:- Similar issue had arisen before the Tribunal in the case of Baldwin Methodist Educational Society [2015 (10) TMI 2416 - ITAT BANGALORE] wherein held that the expenditure, if incurred in an earlier year is adjusted against the income of a later year, it has to be held that the trust had incurred expenditure on religious and charitable purposes from the income of the subsequent year, even though the actual expenditure was in the earlier years, if in the books of account of the trust such earlier expenditure had been set off against the income of the subsequent year. The expenditure that can be so adjusted can only be expenditure on religious and charitable purposes and no other. Also see Commissioner of Income-Tax Versus Institute Of Banking Personnel Selection [2003 (7) TMI 52 - BOMBAY High Court]. Thus we direct the AO to allow the assessee to carry forward the deficit of the income arising on account of excess application of income during the relevant financial year to the subsequent assessment years.
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