9911796707
TMI Blog2016 (1) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome tax Act, 1961 ('the Act' in short), had filed its return for the impugned assessment year claiming exemption u/s.11 & 12 of the Act. In the computation of income filed, assessee claimed carry forward of a deficit of Rs. 2,15,68,002/-. AO denied the claim for a reason that computation of loss under various heads of income and carry forward of such loss to subsequent assessment years for set off was applicable for only assesses other than those which were covered u/ss.11,12, 13 and Sec.10(23)(c) of the Act. He denied the claim for carry forward. 03. Assessee's appeal before the CIT (A) did not meet with any success. CIT (A) relying on the judgment of Hon'ble Delhi High Court in the case of Indian National Theatre Trust [(2008) 305 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gibility for carry forward of such deficit, coordinate bench of this Tribunal in the case of Rajarajeshwari Devasthana Trust v. ITO (Ex), in ITA No.116/Bang/2015, dt.11.06.2015, had considered this issue. It was held at para 7 of the order as under: 07. In so far as the issue relating to carry forward of deficit, it was held as under at paras 11 to 13 of the order dt. 16.02.2009 of this Tribunal in the case of TMA Pai Foundations's case (supra) : "11. With regard to the second issue, the learned counsel submitted that the stand of the revenue that the assessee did not claim the carry forward in the original return and the claim was made for the first time through application u/s.154 of the Act which was time barred and there is no pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 39;s counsel without prejudice to the claim of the assessee, submitted that the excess application as claimed for the earlier years up to 2004-05 cumulatively was to be considered for set off against the surplus for the Assessment Year 2006-07. The counsel for the assessee submitted surplus for the purpose of section 11 is required to be considered after allowing application towards objects of the trust. It is only the surplus over the expenditure is required to be assessed. Undisputedly in the instant case of the assessee, the trust had excess application over the income in the past years which was required to be considered against its income in order to ascertain the surplus left for the purpose of tax after allowing the exemption u/s.11( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted the appeal by the revenue is to be dismissed. 13. Considering the rival submissions we are of the view that all the appeals preferred by the revenue is to be allowed. The assessee is relying on the decision of the Bombay High Court in the case of Institute of Banking (supra) whereas the revenue is relying on the decision of the Tribunal, Bombay Bench in VII ITO v. Trustees of Sathya Sai Trust in (1990) 33 ITD 320. In this case the Tribunal held the deficit arising as a result of excess spending for charitable purposes will not form part of the income and the same cannot be carried forward. With regard to the point whether excess spending will form or not form part of the total income and, therefore, it could be carried forward or not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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