2018 (12) TMI 1961 - HC - Income Tax

Exemption u/s 11 - claim of the assessee for set off and carry forward of deficit of earlier years - HELD THAT - is covered by virtue of Judgment in case of CIT (Exemptions) v/s. Subros Educational Society 2018 (4) TMI 1622 - SC ORDER . This question is also, therefore, not entertained. Appeal is dismissed.

Summary

Issues:
1. Benefit of exemptions under section 11 of the Income Tax Act, 1961.
2. Claim of set off and carry forward of deficit of earlier years.

Analysis:
1. The first issue raised in the appeal was regarding the Tribunal's decision to allow the benefit of exemptions under section 11 of the Income Tax Act, 1961 to the assessee. The Revenue contended that the activities of the assessee were mutual and did not fall within the definition of 'Charitable purpose' as per Section 2(15) of the Act. However, the Tribunal relied on previous decisions of the Court and Tribunal in the assessee's own case to grant the exemption. The High Court noted that a similar question had been considered previously by the Court for the Assessment Year 2003-04 and was not entertained. The Counsel for the Assessee pointed out that this position had been followed by the Tribunal and the Court in subsequent years as well. Consequently, the High Court held that Question (a) did not require consideration.

2. The second issue involved in the appeal was related to the claim of set off and carry forward of deficit of earlier years by the assessee. The Revenue argued that there was no express provision in the Income Tax Act, 1961 permitting such a claim. However, the High Court referred to a judgment of the Supreme Court in the case of CIT (Exemptions) v/s. Subros Educational Society, where the issue was addressed. The High Court concluded that Question (b) was covered by the Supreme Court's judgment and, therefore, also did not require consideration. As a result, the appeal was dismissed by the High Court.