TMI Blog1990 (2) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... that the Appellate Assistant Commissioner was in error in directing the I.T.O. to carry forward the deficit of the current year of Rs. 7,28,290 for set off against the capital gains of a future year. 2. It is contended on behalf of the Department that such order of the AAC is without any justification. Under the provisions of sec. 11, an assessee could claim that it might be permitted to set ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome applied for charitable purpose in a subsequent year exceed or is less than the income of the trust, the deficit of the earlier year should be considered. Apart from this, the amount spent was the amount received by the assessee as an advance in respect of the sale of the property. This remained as advance only for the reason that the Deed transferring the property could not be registered dur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he carry forward of the deficit cannot be called in question. The primary object of the scheme dealing with the charitable trust is to grant exemption to an institution which wholly exists for charitable purposes, in regard to its income. Such income is confined to the income applied for charitable purpose. This is for the reason that charity is a laudable object and has to be encouraged. But wher ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the total income, that alone, therefore, could be carried forward. Where the deficit arises as a result of excess spending for charitable purposes, such excess will not form part of the total income or loss and the same therefore cannot be carried forward. The claim of the assessee that the advance received by it in regard to the sale of property is in the nature of income has also to be rejec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lication of such income in the earlier years. But that is a matter which is to be considered in the year in which the income under the head Capital gains arises. We are also of the view that reliance placed by the assessee on the case in Trustees of Balkan-ji-Bari would not in any way advance its case. That was a case where the Tribunal had observed that if there were substantial carry forward los ..... X X X X Extracts X X X X X X X X Extracts X X X X
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