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2021 (11) TMI 309 - AT - Income TaxAssessment of trust - Disallowance of carry forward of excess expenditure - HELD THAT:- The issue raised in no longer res integra. The Hon'ble jurisdictional High Court in the case of Pr. CIT (Exemption) v. Agastya International Foundation [2018 (8) TMI 1894 - KARNATAKA HIGH COURT] by following the earlier judgment of Ohio University Christ College [2018 (11) TMI 1055 - KARNATAKA HIGH COURT]held that income derived from trust property has 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 to charitable and religious purposes in the subsequent year in which adjustment is 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). Also see case of CIT (Exemption) v. Subros Educational Society [2018 (4) TMI 1622 - SC ORDER]. In view of the above judicial pronouncements, we hold that the CIT(A) is justified in allowing carry forward excess expenditure. Therefore, we uphold the CIT(A)'s order as correct and in accordance with law. - Decided in favour of assessee.
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