TMI Blog2012 (7) TMI 252X X X X Extracts X X X X X X X X Extracts X X X X ..... trust in the subsequent year will have to be regarded as application of the income of the trust for charitable and religious purpose. Also, assessee has been permitted to carry forward the losses and also to claim set off such losses against the income in earlier AYs, which has been accepted by Revenue. Carry forward and set off allowed. See DIT vs. Vishwa jagrithi Mission (2012 (4) TMI 289 (HC)) - Decided against Revenue - ITA No: 1665/Del/2012 - - - Dated:- 29-6-2012 - SHRI A.D. JAIN, AND SHRI J. SUDHAKAR REDDY, JJ. Appellant by : Shri K.Sampath, Adv. Respondent by : Shri S.Krishna, CIT, D.R. O R D E R PER J.SUDHAKAR REDDY, ACCOUNTANT MEMBER This is an appeal filed by the assessee directed against the order ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons. i. CIT vs. Seth Manilal Ranchhoddas Vishram Bhavan Trust, 198 ITR 598 (Guj.) ii. CIT vs. Bhorukar Public Welfare Trust 240 ITR 513 (Cal.) iii. CIT vs. Rao Bahadur Calavala Cunnon Chetty Charities 135 ITR 484 (Mad) iv. CIT vs. Institute of Banking 264 ITR 110 (Bom.) However the A.O. found the case relied upon by the assessee as distinguishable as under:- ..Case I: The question that Hon ble High Court, Gujarat has answered are related to depreciation u/s 11(1) (a) and not excess application of income. Case 2: Here also the Hon ble High Court, Madras decided that depreciation to be allowed on house property while computing income for the purposes of section 11(1a). Case 3: The Hon ble High Court, Madras decided that depr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income. It was held by the AO that excess application of funds in earlier year amounted to double benefit, one being exempt income and other being carry forward of loss. In view of the above, it was held by the A.O. that the assessee was not entitled to carry forward the amount of expenditure over the income, to the next year. Therefore, the claim of loss and its carry forward was held as unacceptable by the A.O. Consequently, the assessment was again completed at Nil income. 3. The assessee carried the matter in appeal. The First Appellate Authority for various reasons given in his order rejected the claim of the assessee. The assessee had relied on a number of decisions including the judgement of Hon ble Bombay High Court in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Range I-Meerut vs. City Education Social Welfare Society Order of Delhi B Bench dt. 26.8.2011 in ITA 5627/Del/2010; b. ACIT vs. M/s Subrathi KKB Charitable Trust Delhi G Bench order dt. 11.5.2012 in ITA no. 1553/Del/2011 for A.Y. 2006-07. 5. Ld.CIT, D.R. Mr.S.Krishna submitted that the issue has been considered by the Cochin Bench of the Tribunal in the case of Adisankara Trust (supra) and that the CIT(A) has rightly followed this decision. 6. Rival contentions heard. On a careful consideration of the facts and circumstances of the case and a perusal of the papers on record and the orders of the authorities below, we hold as follows:- Delhi B Bench in ITA 5627/Del/2010 for A.Y. 2005-06 in M/s City Educational Social Welfare Soci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applied then adjustment of expenses incurred by the trust for charitable religious purpose in the earlier years against the income earned by the trust in the subsequent year will have to be regarded as application of the income of the trust for charitable and religious purpose. The ld.CIT(A) has followed this decision apart from others referred above. The order of the CIT(A) in three A.Ys have been accepted by the revenue. In this year, the ld.CIT(A) has simply based his decision on the finding given in earlier A.Ys. Keeping in view the principle of consistency, we do not see any reason to interfere in the o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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