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2017 (4) TMI 1629 - ITAT BANGALOREAssessment of trust - expenditure incurred for religious or charitable purposes - set off of expenditure on the objects of the society incurred in earlier years as claimed by the appellant society against the current year surplus - HELD THAT:- CIT(A) has decided the issue in favour of the assessee without examining this aspect as to whether the expenditure incurred in earlier years are on account of charitable or religious purposes or not. As per the Tribunal order rendered in the case of DDIT Vs KFCS Ltd. [2016 (1) TMI 396 - ITAT BANGALORE] it was held that if the expenditure incurred is on religious or charitable purposes, it is the expenditure properly incurred by the trust and the income out of which the said expenditure incurred would not be liable to tax and this is not relevant as to whether the expenditure was incurred in the present year or in an earlier year. Hence, this is very important to find out as to whether the expenditure for which the assessee is asking for set off in the present year were incurred for the objects of the trust or not? - There is no finding of the ld. CIT(A) on his aspect of the matter and therefore, we feel it proper to restore the entire matter back to the file of the ld. CIT(A) for fresh decision in all the three years after examining the nature of expenditure incurred by the assessee in the earlier years 1999-2000 to 2001-02, for which the adjustment is being claimed in the present year. Appeals filed by the revenue are allowed for statistical purposes
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