TMI Blog2018 (5) TMI 1693X X X X Extracts X X X X X X X X Extracts X X X X ..... bsequent year will have to be regarded as application of income of the Trust u/s 11 - Decided in favor of assessee. Deletion of excess interest income already included in the gross receipts and was brought to the notice by filing the revised return - Held that:- Since the income was already shown in the gross receipts and thus resulting into double income - it would be in the interest of justice and fair play, the matter is restored back to the file of the AO - allowed for statistical purposes - ITA No.5473/Mum/2015 And CO No.115/Mum/2015 - - - Dated:- 24-5-2018 - Shri Pawan Singh, Judicial Member And Shri Rajesh Kumar, Accountant Member For The Appellant : Shri Ganesh K. Bhat For The Respondent : Shri T.A. Khan ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) erred in allowing carried forward of deficit of earlier years amounting to ₹ 57?38,572/-on account of excess expenditure over the income) against income for subsequent years, without appreciating the facts that this would have to the effect of granting double deduction to the assessee, first as accumulation of income u/s ll(l)(a) or as corpus donation u/s ll(l)(d) in the earlier years or current year and then as application of income u/s 1 l(l)(a) in the current or subsequent years which was legally not permissible? 5. Whether on the facts circumstances of the case in law, the Ld. CIT erred in allowing the assessee to carry forward deficit against the income of subsequent year ignoring that the determination of income u/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that in the current year, appeal of the Revenue deserved to be dismissed in view of the said decision of the Co-ordinate Bench. 5. Learned DR relied on the ground of the appeal filed by the Revenue. 6. We have heard rival submissions and perused the material on record including the decision cited by the learned AR. We observe from the record before us that the issue challenged by the Revenue is whether the CIT(A) was correct in directing the AO to allow the excess expenditure / losses brought forward from earlier year to be set off against the surplus in the current year and subsequent years and considering the same as application of income for charitable purpose. On the perusal of the decision of the Co-ordinate Bench in ITA No.514 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Charitable Trust, there was no provision to carry forward of the excess of expenditure of earlier years to be adjusted against income of subsequent years. We do not find any merit in this argument of the Department. 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 and religious purposes in the earlier years against the 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 adjustment has been made having regard to the benevolent provisions contained in section 11 of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which inadvertently shown amounting to ₹ 35,05,729/- on account of interest income which was already included in the gross receipts and was brought to the notice by filing the revised statement of income during the assessment proceedings. 10. Learned AR at the outset submitted before the Bench that the issue as raised by the assessee by way of cross objection is fully covered by the decision of Jurisdictional High Court in case of CIT vs. Pruthvi Brokers Shareholders Pvt. Ltd., 3908/2010 as reported in 349 ITR 336 and therefore, the same has not been considered by the authorities below. Learned Counsel prayed before the Bench that the same should be decided in the light of the said decision. 11. Learned DR on the other hand re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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