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2021 (3) TMI 225 - AT - Income TaxAssessment of trust - depreciation claimed on fixed assets and carry forward of excess application of income for charitable purposes to subsequent years - HELD THAT:- Hon’ble Supreme Court in the case of CIT Vs. Subros Educational Society [2018 (4) TMI 1622 - SC ORDER] where held that any excess expenditure incurred by trust / charitable institution in earlier assessment year could be allowed to be set off against income of subsequent years by invoking section 11 - We further noted that in the case of CIT Vs. Institute of Banking Personnel Selection [2003 (7) TMI 52 - BOMBAY HIGH COURT] had considered an identical issue and held that excess application of income for charitable purposes can be carried forward to subsequent year and trust is entitled to set off amount of excess application of the last year against income derived from property held under the trust. The above finding recorded by learned CIT(A) is uncontroverted by Revenue. DR has supported the order of Assessing Officer and in light of decision of ITAT., Chennai Bench in the case of Anjuman-E-Himayth-E-Islam vs. ADIT(Exemption) [2015 (7) TMI 594 - ITAT CHENNAI] we find that Hon’ble Jurisdictional High Court has considered the above issue and by following number of decisions of other High Courts has held that depreciation on fixed assets is allowable, even though trust claimed amount incurred for purchase / acquisition of capital asset as application of income. Similarly, Hon’ble High Court has further held that excess application of income of charitable trust can be carried forward and trust is entitled for set off of excess application of income in the earlier year against income of the trust in subsequent years. Therefore, we are of the considered view that there is no error in the findings recorded by learned CIT(A) and hence, we are inclined to uphold findings of CIT(A) and reject ground taken by Revenue. - Decided against revenue.
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