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2022 (1) TMI 244 - AT - Income TaxAssessment of trust - allowance of carry forward of deficit to the assessee’s trust - assessee is a trust registered under section 12A - AO rejected the claim holding that the provision 11 of the Act does not permit the determination of deposit - HELD THAT:- CIT(A) has allowed the deficit to the assessee to be carried forward following the decision of the Hon’ble Jurisdictional High Court[2013 (3) TMI 654 - BOMBAY HIGH COURT]. He also supported such decision by the decision of Hon’ble Supreme Court wherein the Special SLP filed by the Revenue was dismissed. [2018 (4) TMI 1622 - SC ORDER]. Also with effect from 1-4-2022 explanation (2) is inserted after explanation 1 u/s 10(23C) of the by the Finance Act, 2021, which provides that – Explanation 2.-For the purposes of this clause, it is clarified that the calculation of income required to be applied or accumulated during the previous year shall be made without any set off or deduction or allowance of any excess application of any of the year preceding to the previous year. However Notes on clauses to Finance Bill 2021 says that These amendments will take effect from 1st April, 2022 and will, accordingly, apply in relation to the assessment year 2022-2023 and subsequent assessment years. Therefore it does not apply for the impugned assessment year. No infirmity was pointed out by the learned Departmental Representative in the order of the learned Commissioner of Income Tax (Appeals). - Decided against revenue.
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