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2020 (12) TMI 447 - AT - Income TaxExemption u/s 11 - Denial of carry forward of the deficit of excess of expenditure over income - Application of income - assessee is a Section 25 company under the Companies Act 1956 duly registered with Registrar of Companies, Maharashtra AND also registered u/s.12A in the status of public charitable trust - Whether the assessee is entitled for exemption u/s.11(1)(a) for the 15% of gross income towards accumulation as a standard deduction? - deficit being excess of expenditure over income need to be worked out after reducing the said standard deduction? - HELD THAT:- We find that the Co-ordinate Bench of Surat Tribunal in its recent judgment in the case of Udhna Academy Education Trust [2020 (12) TMI 411 - ITAT SURAT] for A.Y.2011-12 had observed that the decision relied by the ld. CIT(A) on Mumbai Tribunal order in Dawat Institute of Dawoodi Bohra Community has been recalled by Mumbai Tribunal [2013 (3) TMI 849 - ITAT MUMBAI] We find that the Surat Tribunal by placing reliance on the decision of Mumbai Tribunal in the case of Lalji Velji Charitable Trust [2018 (3) TMI 1192 - ITAT MUMBAI] and also Gnyan Dham Vapi Charitable Trust [2020 (10) TMI 238 - ITAT AHMEDABAD] had ultimately held that there is no bar in law and there is no specific provision in the Act which says that deduction of 15% for accumulation will not be allowed in case of deficit to such 15% accumulation is allowable irrespective of whether 15% of income have been applied or not. Appeal of the assessee is allowed.
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