TMI Blog2010 (6) TMI 765X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure over income to subsequent years for the adjustment against receipt/income of subsequent years for treating as application in such subsequent years. 3. The facts of the case are that assessee is a society registered under the Societies Registration Act for advancement and promotion of science and technology and dissemination of information relating to science and technology by developing Science City Project. For Asst. Year 2006-07 grant in aid amounting to ₹ 34.96 crores were treated as revenue receipts and thus included in the income for the purpose of calculating 85% of such income as application. The matter went to Tribunal which vide its order in ITA No.1508/Ahd/2009 decided on 17.7.2009 held that grantsin- aid wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided by the Direct Tax Laws (Amendment) Act, 1989 with effect from 1-4-I989 by inserting subclause (d) in section 11(1). In view of this fact, we are of the view that the grant in aid received by the assessee to form part of the corpus cannot be held to be the income of the assessee and assessee will be entitled for the exemption u/s.11(l)(d) of the Act. We accordingly, set aside the order of the CIT(A) on this issue allowing the grounds of appeal of the assessee bearing Ground Nos. 1 to 3 in AY 2005-06 and dismiss the appeal of the revenue in A Y 2004-05. It is held that the grant-in-aid received by the assessee will form part of the corpus and would not be held as income of the assessee. As per the above decision, we uphold the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s incurred by the trust for charitable and religious purposes in the earlier year against income earned by the trust in the subsequent year will have to be regarded as application of income of the trust for charitable and religious purposes in the subsequent year in which such adjustment has been made having regard to the benevolent provisions contained in section 11 of the Act and will have to be excluded from the income of the trust under section 11(1)(a) of the Act. In view of the above discussion, we are of the opinion that, on the facts and in the circumstances of the case, the assessee is entitled to carry forward expenses for set off in the subsequent year. The question referred to us is, therefore, answered in the affirmative, i. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8 7. In this year following ground is raised by the Revenue :- (1) The ld. CIT(A) was not justified in deleting the addition made on account of a grant of ₹ 31,03,25,670/- received treated as income and allowed to carry forward the deficit of income over the expenditure. 8. The issue involved is carry forward of unabsorbed application to subsequent years for being treated as application in such subsequent years to be adjusted against receipts/income of that subsequent year. 9. We have heard the parties and carefully perused the material on record. The issue is covered by the decision of Jurisdictional High Court in the case of CIT vs. Shri Plot Swetamber Murti Pujak Jain Man (supra). Since we have already decided the issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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