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2015 (1) TMI 1113 - AT - Income TaxExcess application of the earlier year set off this year disallowed - assessee is a trust registered U/s. 12AA - disallowance of ₹ 14 crores capital expenditure - Held that:- Since 85% of the assessee's income of the Trust during the relevant assessment year is ₹ 43,41,69,412/- (51,07,87,543/- ×85÷100), it is evident from the above computation that the assessee has applied more than 85% of its income for charitable or religious purpose in accordance with the provisions of Sec.11(1)(a) of the Act. Therefore, there is no shortfall in application of fund as worked out by the Ld. Assessing Officer, as a result setting off the brought forward excess application of income from the assessment year 2007-08 to the relevant assessment year is not necessary and irrelevant in the present case before us. For the above said reasons we hereby set aside the order of the Ld.A.O wherein he has disallowed the capital expenditure of ₹ 14 Crores and reduced the shortfall in application of funds from the excess brought forward application of income of the assessment year 2007-08 to the extent of the shortfall and further we hereby strike down the order of the Ld.CIT(A) wherein he has directed the Ld.A.O to bring to tax the sum of ₹ 11,05,02,792 by denying the benefit of carried forward of excess application of income. - Decided in favour of assessee.
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