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TMI Blog2016 (3) TMI 730X X X X Extracts X X X X X X X X Extracts X X X X ..... s no other choice except to presume that the income of the assessee was already allowed in the earlier year. Hence, nothing remains to carry forward. If that is the situation, this Tribunal is of the considered opinion that there is no occasion for the assessee to carry forward the income to the subsequent year. In the absence of any details, this Tribunal finds no reason to interfere with the order of the lower authority. Accordingly, the order of the CIT(Appeals) is confirmed. - Decided against assessee - ITA No.1253/Mds/2014 - - - Dated:- 5-2-2016 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMBER For The Appellant by : Shri Deepak John, Advocate For The Respondent by : Sh. P. Radhakrishnan, JCIT ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: This appeal of the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-VII, Chennai, dated 25.03.2014 and pertains to assessment year 2008-09. 2. The only issue arises for consideration is with regard to carry forward of excess application of income over the income. 3. Shri Deepak John, the Ld.counsel for the assessee, submitted that the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of 15% might have been allowed as exemption under Section 11of the Act. Therefore, there is no question of carry forward of the expenditure incurred by the assessee in the subsequent assessment year. Placing reliance on the decision of this Bench of the Tribunal in the Anjuman-E-Himayath-E-Islam v. ADIT (Exemptions) in I.T.A. No.2271/Mds/2014 dated 02.06.2015, the Ld. D.R. submitted that on identical set of facts, this Tribunal examined the possible source of income and found that the accumulated funds, if any, would be allowed under Section 11(1) of the Act in the year in which it was accumulated. Therefore, the same cannot be claimed as exemption in the year in which it was applied for charitable purpose. The Ld. D.R. clarified that when the income was accumulated and it was allowed under Section 11(1) of the Act as exemption, claiming exemption in the subsequent year in which it was applied for charitable purpose would amount to double deduction. Therefore, the same cannot be allowed once again. 5. We have considered the rival submissions on either side and perused the relevant material available on record. In fact, the Tribunal has observed as follows in Anjuman-EHim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble only from the following sources:- i) Voluntary contributions received by the Trust towards its corpus, ii) Other voluntary contributions, iii) Accumulated fund, iv) Amount received by way of loan, v) Sundry creditors, vi) Income derived from the Property held under the Trust. [Hon ble Calcutta High Court has held in the case DCIT VS. Girdharilal Shewnarain Tantia Trust reported in [1993] 199 ITR 15(Cal.) that The income contemplated by the provisions of section 11 is the real income and not the income as assessed or assessable . Further, Hon ble Apex High Court has held in the case of J.K.Trust Vs. Ld. CIT /CEPT reported in [1957] 32 ITR 535(SC) that Property is a term of the widest import, and subject any limitation or qualification which the context might require, it signifies every possible interest which a person can acquire, hold and enjoy. Business would undoubtedly be property unless there is something to the contrary in the enactment. ] When the Trust applies its funds from its Corpus, accumulated fund, Sundry creditors or from the loan obtained by the Trust, then such funds which are applied cannot be said to be funds applied from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e question of carry forward of excess application of income does not arise. However the amount applied from the Loan or Sundry Creditors will be allowed as application of fund in the year in which such Loan or Sundry Creditors are repaid. It is pertinent to mention that if the amount is applied from the Corpus fund or accumulated fund it will not be treated as application of fund because Corpus fund and accumulate fund are already exempt from the income of the Trust and once again if it is treated as application of fund it would amount to double deduction. Therefore the claim of the assessee to carry forward the excess application of fund cannot be entertained applying the commercial principles. However if the excess amount of ₹ 23,96,355/- is applied from the borrowed fund or from Sundry Creditors, the same shall be allowed as application in the year in which such Loan or Sundry Creditors are repaid from the income of the Trust as discussed herein above. Needless to mention that the income of the Trust refers to income derived from the property held under the Trust and any voluntary contributions received by the Trust other than contributions made with spe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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