TMI Blog2017 (11) TMI 1798X X X X Extracts X X X X X X X X Extracts X X X X ..... ce or business - See Sabarmati Ashram Gaushala Trust case [2014 (1) TMI 1539 - GUJARAT HIGH COURT] Non granting of set off of brought forward unabsorbed depreciation - HELD THAT:- Deficit shown in the earlier years is eligible to be given set off for surplus, if any for the year under consideration. Therefore, the AO is directed to allow the set off of brought forward deficit while giving appeal effect to our order. - ITA.No.2496/Ahd/2015 With CO No.184/Ahd/2015 - - - Dated:- 9-11-2017 - SHRI MAHAVIR PRASAD, JUDICIAL MEMBER AND SHRI AMARJIT SINGH, ACCOUNTANT MEMBER For the Appellant : Shri Prasoon Kabra, Sr.DR For the Respondent : Shri Sanjay R. Shah, AR ORDER PER MAHAVIR PRASAD, JUDICIAL MEMBER: This appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was no longer charitable trust and accordingly, the assessee was not eligible for exemption u/s.11 rws 12A of the Act. The ld.AO also held that the assessee was carrying on business with profit motive and its activities were no longer charitable as it had a surplus of ₹ 92,01,510/- during the relevant year. The AO denied exemption u/s.11 to the assessee and treated the surplus of ₹ 92,01,510/- as business income of the assessee. Against such order, the assessee preferred first statutory appeal before the ld.CIT(A) who partly allowed the appeal of the assessee. Now assessee is before us. 3. While deciding the appeal, the ld.CIT(A) held that since facts of the present case were exactly similar to the assessee s case decided b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so to open schools and hostels for imparting education in cow keeping and agriculture having regard to the trust objects. All these were the objects of the general public utility and would squarely fall under section 2 (IS) of the Act. Profit making was neither the aim nor object of the Trust. It was not the principal activity. Merely because while carrying out the activities for the purpose of achieving the objects of the Trust, certain incidental surpluses were generated, would not render the activity to the nature of trade, commerce or business. As clarified by the CBDT in its Circular No. 11/2008 dated 19th December 2008 the proviso aims to attract those activities which are truly in the regarded as business even when profit motive c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as taken following grounds: 3. The Assessing officer while holding the appellant's income as business income erred in not granting set off of brought forward unabsorbed depreciation on the ground that it was deficit of earlier years which cannot be treated as business loss. It is submitted it be so held now. 3.1 The Assessing officer erred in holding that in earlier years, appellant would have got deduction of the capital expenditure as application of funds and set off of unabsorbed depreciation now would result in double deduction. The appellant submits that in the earlier years it has not claimed deduction of capital expenditure but had claimed only depreciation accordingly there is no double deduction. It is submitted it be so ..... X X X X Extracts X X X X X X X X Extracts X X X X
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