TMI Blog2021 (11) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... 94 - KARNATAKA HIGH COURT] by following the earlier judgment of Ohio University Christ College [ 2018 (11) TMI 1055 - KARNATAKA HIGH COURT] held that income derived from trust property has 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd B.R. Baskaran, Member (A) For the Appellant : Pradeep Kumar, CIT-DR For the Respondents : Satish Mody, Advocate ORDER Per George George K., JM This appeal at the instance of the Revenue is directed against CIT(A)'s order dated 16.09.2020. The relevant assessment year is 2016-2017. 2. The grounds raised read as follows:- 1. On facts and circumstances of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s application of income u/s. 11(1)(a) in subsequent years which is legally not permissible. 5. Any other ground that may be submitted before the Hon'ble ITAT. 3. The brief facts of the case are as follows: The assessee trust was granted registration u/s. 12A of the I.T. Act, 1961. For the relevant assessment year, return of income was filed on 15.10.2016. The assessment u/s. 143(3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the judgment of the Hon'ble jurisdictional High Court in the case of Pr. CIT (Exemption) v. Agastya International Foundation reported in: (2019) 417 ITR 539 (Kar.) and the judgment of the Hon'ble Apex Court in the case of CIT (Exemption) v. Subros Educational Society reported in (2018) 303 CTR 1 (SC). 7. We have heard rival submissions and perused the material on record. The solitary is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of the trust to charitable and religious purposes in the subsequent year in which adjustment is made having regard to the benevolent provisions contained in section 11 of the Act and such adjustment will have to be excluded from the income of the trust under section 11(1)(a). 7.1. A similar view has been held by the Hon'ble Apex Court in the case of CIT (Exemption) v. Subros Education ..... X X X X Extracts X X X X X X X X Extracts X X X X
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