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2019 (2) TMI 1133 - AT - Income TaxExemption u/s 11 - exemption owing to accumulation of income to the tune of 15% of its income as is provided under second limb of Section 11(1)(a) - benefit of carry forward of these losses/deficit being excess of expenditure over income to subsequent years to be set off against surplus arising in subsequent years - Held that:- Respectfully following the aforesaid decision of Hon‟ble Supreme Court in the case of ACIT v. A.L.N.Rao Charitable Trust [1995 (10) TMI 2 - SUPREME COURT], Hon‟ble Bombay High Court decision in the case of Institute of Banking Personnel Selection(IBPS) [2003 (7) TMI 52 - BOMBAY HIGH COURT] and Dawat Institute of Dawoodi Bohra Community [2013 (4) TMI 897 - ITAT MUMBAI] and ITO(E) v. Lakshmi and Usha Mittal (Formerly known as The LNM Foundation)[2012 (10) TMI 1196 - ITAT MUMBAI], we hold that under factual matrix of the case before us, the assessee trust shall not be allowed exemption owing to accumulation of income to the tune of 15% of its income as is provided under second limb of Section 11(1)(a) of the 1961 Act as its expenditure towards the objects of the trust has already exceeded its income from property held for charitable purposes. As provided by Hon‟ble Bombay High Court in the case of Institute of Banking Personnel Selection(IBPS)(supra), the assessee will be entitled for carry forward of excess of expenditure incurred towards objects of the trust in excess of income from property held for charitable purposes , as is allowable as provided under first limb of provisions of Section 11(1)(a). Both Revenue appeal as well assessee's CO stood dismissed.
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