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2023 (11) TMI 977 - AT - Income TaxAssessment of trust income - set off of excess application of income - Exemption u/s 11 allowed - excess application of income in the earlier assessment years against the current year’s surplus found - AO after allowing accumulation of income u/s. 11(1)(a) at 15% noted that there was a taxable surplus which the assessee adjusted against the excess utilization in the preceding years - HELD THAT:- The books of accounts are audited and Form 10B has been filed and we do not find any adverse comments for the AY 1999- 2000 to 2001-02. On going through the assessment order, the claim made by the assessee for the previous three assessment years excess application has been denied stating that it is not permissible, but the AO has not disputed the figures claimed by the assessee. We note that similar issue has been decided by the assessee in favour of the assessee in the case of ACIT v. City Hospital Charitable Trust [2015 (6) TMI 235 - ITAT BANGALORE] and it is held that excess application of income of the previous years can be set off from the subsequent year’s surplus income. The judgment of Jyothy Charitable Trust [2015 (11) TMI 1295 - ITAT BANGALORE] also supports the case of the assessee. Thus assessee is eligible for set off of excess application of income of AYs 1999-2000 to 2001-02 from the current year’s income. Accordingly, we allow the appeal of the assessee.
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