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2016 (1) TMI 307 - AT - Income TaxExemption in terms of section 11(1)(a) - entitlement for carry forward of excess application of income - Held that:- The income of charitable trusts is required to be computed on commercial principles. The concept of application of the income for the year in which the income has arisen is not found in Section 11(1)(a) of the Act. No limitation to the above effect is found in the language of the section. It merely requires application of the income that has arisen from the property held under trust. In this view of the matter, the principles relating to set off of losses, etc. is not of any relevance and therefore any excess application of income during the year can be regarded as application of the income of future years and can be adjusted. Therefore, in our view, the claim of the assessee for carry forward of excess application is in accordance with the judicial precedents on the issue and the same is allowable. See The Jyothi Seva Society of Bangalore Versus Asst. Director of Income Tax (Exemption) , Circle 17 (2) , Bangalore [2015 (11) TMI 1270 - ITAT BANGALORE] - Decided in favour of assessee.
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