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2021 (1) TMI 402 - ITAT BANGALORE - Income Tax
Head Note / Extract:
Assessment of trust - denial of carry forward of deficit - carrying forward of the losses for being set off against the income of the charitable trust - CIT-A allowed claim - as per revenue there is no express provision in the income tax act allowing such claim and Ld. CIT (A) granted double benefit to assessee 1st as accumulation of income or corpus donation in previous year/current year and exemption under section 10 (34) and then as application of income under section 11 (1) (a) - HELD THAT:- The issue stands covered by order of CIT vs Ohio University Christ College [2018 (11) TMI 1055 - KARNATAKA HIGH COURT] and decision CIT vs Institute of Banking [2003 (7) TMI 52 - BOMBAY HIGH COURT] .These decision upholds the carry forward of losses for being set off against income of charitable trust for subsequent assessment years. We note that an identical issue has been decided by coordinate bench of this Tribunal in case of ITO vs Shraddha trust [2017 (4) TMI 1289 - ITAT BANGALORE ] wherein, it was held that set-off of excess of expenditure incurred over the income of earlier years can be adjusted against income of subsequent years and such adjustment would not be application of income in subsequent years. - Decided against revenue.