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2018 (8) TMI 1984 - KARNATAKA HIGH COURTCarrying forward of the losses for being set off against the income of the charitable trust for the present assessment year - Set-off of excess/ expenditure/application pertaining to current assessment year and earlier years against the income of the future assessment year - HELD THAT:- The controversy is covered by the judgment in CIT (Exemptions) v. Ohio University Christ College [2018 (11) TMI 1055 - KARNATAKA HIGH COURT] as held Income derived from the trust property has also got 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 for charitable and religious purposes in the subsequent year in which adjustment had been made having regard to the benevolent provisions contained in section 11 of the Act and such adjustment will have to be excluded from the income of the trust under section 11(1)(a) Allowability of depreciation in the hands of religious and charitable trust allowed - See CIT v. Agricultural Produce Market Committee [2018 (6) TMI 1393 - KARNATAKA HIGH COURT]. CIT v. Rajasthan and Gujarati Charitable Foundation [2017 (12) TMI 1067 - SUPREME COURT]. No substantial question of law.
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