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2013 (12) TMI 992 - AT - Income TaxExemption u/s. 11 – whether Trust itself is not lawful Trust - Held that:- Following CIT vs. Gujarat Maritime Board [2007 (12) TMI 7 - SUPREME COURT OF INDIA] – Any institution created for public utility by the State Government has been held to be entitled for registration and grant of exemption under section 11 – The assessee’s function also does not involve any profit motive - As per MID Act the assessee was required to carry out Government functions which are of public interest - It cannot be said that assessee is a Corporate Body and is not entitled to exemption under section 11 to 13 - By virtue of section 19 of the MID Act to provide services of public utility and legal obligation on the part of Corporation to hold and apply all its property income and assets for the purpose of the Act i.e. object of general public utility – Following Radhasoami Satsang vs. CIT [1991 (11) TMI 2 - SUPREME Court] - There is no material change justifying the revenue to take a different view of the matter - The denial of exemption under section 11 is contrary to the doctrine of consistency - Decided against Revenue. Carry forward of deficit – Held that:- Following CIT vs. Institute of Banking Personnel Selection [2003 (7) TMI 52 - BOMBAY High Court] - In case of charitable trust whose income is exempt under section 11 excess expenditure in the earlier years can be adjusted against income of subsequent years and such adjustment would be application of income for subsequent years – Decided against Revenue.
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