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2019 (1) TMI 1260 - ITAT PUNEClaim of exemption u/s 10(23C)(vi) - exemption u/s 11 - 15% of receipts are to be taken into consideration - Held that:- We find that the Hon'ble Supreme Court in DIT Vs. Raghuvanshi Charitable Trust and Ors. [2010 (7) TMI 158 - DELHI HIGH COURT] had held that exemption under section 11(1)(a) i.e. of 15% of income was absolute exemption and application of section 11(2) of the Act does not extend to nullify absolute exemption. As further been held in the case of Programme for Community Organization [2000 (11) TMI 4 - SUPREME COURT] that a charitable trust was entitled to accumulate 15% of the receipts without considering the expenditure and application made on the objects of trust. CIT(A) applying the said proposition has allowed the claim of assessee. We find no merit in the grounds of appeal raised by Revenue in this regard and we uphold the method of computation of deficit applied by CIT(A) in line with the provisions of section 11(1)(a) of the Act. Whether in the instant assessment year the application of income was more than the receipts of the year, can the excess application of income i.e. expenditure in the hands of assessee, be carried forward to the succeeding year? - Held that:- In view of the settled position of jurisdictional High Court, which has been applied by the CIT(A), we find no merit in the issue raised by the Revenue in this regard and the same is dismissed. Once the grounds of appeal raised by Revenue are dismissed, then admittedly, there is no taxable income in the hands of assessee trust. Upholding the order of CIT(A), we dismiss the grounds of appeal raised by Revenue. Since the income of assessee has been held to be eligible for exemption under sections 11 to 13 of the Act, we hold that the alternate claim made by assessee of exemption under section 10(23C)(vi) becomes academic in nature. AR for the assessee stressed that the said deduction has been allowed to the assessee in preceding and subsequent assessment years. We are of the view that in view of our decision with regard to Revenue’s appeal, the grounds of appeal raised by assessee at present become academic and we keep the issue of allowability of deduction under section 10(23C)(vi) of the Act alive, which shall be adjudicated upon at the relevant time, if relevant time arises.
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