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2022 (1) TMI 74 - AT - Income TaxAssessment u/s 153A - Exemption u/s 11 - Carry forward of the deficit being excess of expenditure over income to the subsequent years by holding that the same is eligible for set off against the income of subsequent years - HELD THAT:- We find that the issue of carry forward losses and setting off against the subsequent years surplus is squarely covered by the decision as cited by the Ld. A.R. We have perused the order of Ld. CIT(A) carefully and found that the Ld. CIT(A) has passed a very reasoned order after following the decision of CIT vs. Institute of Banking Personnel Selection (IBPS) [2003 (7) TMI 52 - BOMBAY HIGH COURT] wherein it has been held by the Hon’ble High Court that the carry forward of deficit of earlier years and setting it off against the surplus of the subsequent years is allowable. Similarly, in the case of CIT vs. Subros Educational Society [2018 (4) TMI 1622 - SC ORDER] the Hon’ble Supreme Court has held that the excess expenditure incurred by the charitable institution in the earlier years could be allowed to be set off against the subsequent years by invoking section 11. Considering the ratio laid down in the above decision, we are inclined to uphold the order of Ld. CIT(A) by dismissing the appeal of the Revenue. Assessment u/s 153A - Addition of undisclosed income on the ground that assessee has diverted funds to another sister entity which is not in accordance with the objectives and general accounting principle - HELD THAT:- The undisputed facts are that on the date of search the assessment for the current assessment year was not pending and therefore it has attained finality and thus it was unabated on the date of search. Therefore the AO has no jurisdiction to make addition in an unabated assessment year without there being incriminating materials and accordingly the jurisdiction of the AO can not be justified. We note that the ld CIT(A) passed a very reasoned and speaking order after following the decision of Hon'ble Bombay High Court in the case of CIT vs. Continental Warehousing Corporation [2015 (5) TMI 656 - BOMBAY HIGH COURT], Murli Agro Products Ltd [2010 (10) TMI 1052 - BOMBAY HIGH COURT] and Pr. CIT vs. Meeta Gutgutia [[2018 (7) TMI 569 - SC ORDER] - Therefore we do not find any infirmity in the order and are inclined to uphold the same by dismissing ground no.3.
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