TMI Blog2015 (3) TMI 1419X X X X Extracts X X X X X X X X Extracts X X X X ..... e in terms of Sec. 11 to 13 of the Act. This ground of the Revenue is dismissed. Set off and carry forward of deficit of earlier years - We find that this issue was considered by the Hon ble Bombay High Court in the case of Institute of Banking [ 2003 (7) TMI 52 - BOMBAY HIGH COURT] 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 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 ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owance of such claim. 3. At the very outset, the Ld. Counsel for the assessee stated that the issue stands covered in favour of the assessee and against the Revenue by the order of the Tribunal in assessee s own case for A.Y. 2008-09 in ITA No. 6621/M/12. 4. Per contra, the Ld. Departmental Representative could not bring any distinguishing fact/decision in favour of the Revenue. 5. We have carefully perused the orders of the authorities below and the relevant decision of the Tribunal in ITA No. 6621/M/12 for A.Y. 2008-09. We find force in the contention of the Ld. Counsel. The issues involved in the year under consideration were also there before the Tribunal in A.Y. 2008-09. We find that the Tribunal has followed the order of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arlier years would not amount to application of income for charitable or religious purposes. In the present case, the AO did not allow carry forward of the excess of expenditure to be set off against the surplus of the subsequent years on the ground that in the case of a charitable trust, their income was assessable under self-contained code mentioned in Se. 11 to 13 of the Income-tax Act and that the income of the charitable trust was not assessable under the head Profits and gains of business under Sec. 28 in which the provision for carry forward of losses was relevant. That, in the case of a charitable trust, there was no provision for carry forward of the excess of expenditure of earlier years to be adjusted against income of the subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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