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2019 (2) TMI 1139 - AT - Income TaxExemption u/s 11 - carry forward of deficit of earlier years and allowing set off against the income of the succeeding years - whether charitable trust registered u/s 12A of the Income-tax Act, 1961 can carry forward excess application of income over and above income derived from property held under trust to subsequent year or not? - HELD THAT:- The Hon’ble Bombay High Court in the case of CIT vs Institute of Banking & Personnel Selection [2003 (7) TMI 52 - BOMBAY HIGH COURT) has considered an identical issue in the light of provisions of section 11 and held that income derived from trust property has also got to be computed at commercial principles and if commercial principles are applied, then adjustment of expenses incurred by the trust for charitable and religious purpose in the earlier years against income earned by trust in the subsequent year will have to be regarded as application of income of the trust for charitable and religious purpose in the subsequent year for which adjustment has been made having regard to the benevolent provisions contained in section 11 of the Act and that such adjustment will have to be excluded from the income of the trust u/s 11(1)(a) of the Act. - Decided in favour of the assessee.
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