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2021 (7) TMI 6 - AT - Income TaxAssessment of trust - Carry forward of the excess of expenditure/deficit - assessee carried the matter before the ld. CIT(A) and assailed the assessment claiming that income derived from the trust should be computed from sound commercial principles and therefore, carry forward and set off of deficit should be allowed - CIT(A) directed the Assessing Officer to allow carry forward of net deficit of the current year - HELD THAT:- The Hon'ble High Court of Gujarat in the case of Shri Plot Swetamber Murti Pujak Jain Mandal 1 [1993 (11) TMI 17 - GUJARAT HIGH COURT] had the occasion to consider the CBDT No. 100 dated 24.01.1973 which allowed repayment of loan taken in earlier years for fulfilment of charitable objects as application - It is of the view that the same principle should apply if instead of taking the loan the organization spent more out of its corpus and it is reimbursed in subsequent years. Similarly, the Hon'ble High Court of Delhi in the case of Raghuvanshi Charitable Trust [2010 (7) TMI 158 - DELHI HIGH COURT] has held that the assessee trust can be allowed to carry forward deficit of current year and to set off the same against the income of subsequent years. We do not find any error or infirmity in the findings of the ld. CIT(A). - Decided against revenue.
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