TMI Blog2018 (12) TMI 825X X X X Extracts X X X X X X X X Extracts X X X X ..... ash the orders of the lower authorities and allow the carried forward of current year’s loss to be set off in the future years. It is ordered accordingly. - Decided in favour of assessee. - ITA No. 3033/Del/2015 - - - Dated:- 13-12-2018 - Shri H.S. Sidhu, Judicial Member And Shri L.P. Sahu, Accountant Member For the Appellant : Shri K. Sampath, Advocate For the Respondent : Shri Sridhar Dora, Sr. DR ORDER H.S. SIDHU, JM: This appeal has been filed by the assessee against the order dated 20.3.2015 passed by the Ld. CIT(A), Meerut pertaining to relevant assessment year 2010-11 on the following grounds:- 1. That Ld. CIT(A) has failed to appreciate the content and tenor o various High Court and Tribunal judgments ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of loss on account of capital expenses is allowable. The AO therefore, did not allow the carry forward of either the current year loss or that of earlier year loss. The AO however, stated that the assessee satisfies the condition for exemption u/s. 11 and 12 and completed the assessment NIL vide order dated 23.1.2013 passed u/s. 143(3) of the Income Tax Act, 1961 (in short Act ). 3. Aggrieved by the order of the Assessing Officer s order, assessee appealed before the Ld. CIT(A), who vide his impugned order dated 20.3.2015 has upheld the action of the AO and dismissed the appeal of the assessee. Now against the impugned order, the Assessee is in appeal before the Tribunal. 4. Ld. counsel for the assessee has stated that Ld. CIT(A) h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wed to be carried forward. This issue according to us is no longer res integra in view of the Coordinate Bench common decision dated 10.8.2015 in assessee s own case for the AY 2008-09 passed in ITA No. 4326/Del/2014 and M/s City Educational and Society Welfare Society vs. Additional CIT in ITA No. 4056/Del/214 in AY 2009-10. The Tribunal has adjudicated the issue in dispute as under:- 7. I have heard rival submissions and perused the material on record. I find that the AO was of the view the loss suffered during the year was on account of capital expenditure and therefore loss cannot be allowed to be carried forward. This issue according to me is no longer rest integra. I further find that the Tribunal in assessee s own case for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n for carry forward of losses was relevant. According to the revenue, there was no provision for carry forward of the excess of expenditure of earlier years to be adjusted against the income of subsequent years. This argument was rejected by the Bombay High Court and it has been held 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 learned CIT(A) has followed this decision apart from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ring on behalf of the applicant / appellant is correct. Therefore, we have heard him on the aforesaid question of law as well but did not find any merit therein. The miscellaneous application is dismissed. 7. Respectfully following the Coordinate Bench order of the Tribunal in assessee s own case passed in assessment year 2008-09 vide order dated 10.8.2015 and in view of the Order dated 16.4.2018 Hon ble Supreme Court of India in the case of CIT(E) vs. Subros Educational Society (2018) 303 CTR 0001 (SC) which is identical to the facts of the instant case, hence, we quash the orders of the lower authorities and allow the carried forward of current year s loss to be set off in the future years. It is ordered accordingly. 8. In th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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