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TMI Blog2018 (2) TMI 1087X X X X Extracts X X X X X X X X Extracts X X X X ..... rder of the ld CIT(A) in directing the AO to allow carry forward of excess expenditure for adjustment against income of subsequent years - Decided against revenue - ITA No.1550/Bang/2017 - - - Dated:- 9-2-2018 - SHRI JASON P BOAZ, ACCOUNTANT MEMBER AND SHRI LALIET KUMAR, JUDICIAL MEMBER For The Appellant : Shri Ramesh Kumar, Addl. CIT For The Respondent : None ORDER PER SHRI JASON P BOAZ, ACCOUNTANT MEMBER : This appeal by the Revenue is directed against the order of the CIT(A) - 14, LTU, Bangalore dated 28/4/2017 for asst. year 2013-14. 2. Briefly stated, the facts of the case relevant for disposal of this appeal are as under:- 2.1 The assessee trust, registered u/s 12A of the Income-tax Act, 1961 (in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplication pertaining to current asst. year and earlier years against the income of the future asst. year without appreciating the fact that as per the scheme of taxation of charitable or religious trust/institution as codified u/s.11,12 and 13, is no provision for computing loss from property held under trust/institution on account of excess application of income/funds of the trust. b) The CIT (A) has failed to appreciate the fact that the normal computation of income under respective heads as envisaged u/s 15 to 59 are not applicable to the computation of income in respect of charitable trust/institution for the purpose of claiming exemption under sec.11, 12 and 13 and, therefore, the provisions relating set-off of loss from one sou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Charitable Trust (2015) 42 ITR (Trib) 583, Bangalore (ii) DDIT VS. Jyothi Charitable Trust (60 taxmann.com 165) (iii) Shraddha Trust (ITA No.899/Bang/2016 dated 7/4/2017; (iv) DCIT Vs. Manipal Academy of Higher Education (2015) 44 ITR (Trib) 18 (Bang) 3.4.1 We have heard the rival contentions and perused and carefully considered the material on record, including the judicial pronouncements cited. We find that the issue before us of carry forward of excess expenditure for adjustment against income of subsequent years is covered by the decisions of the Co-ordinate Benches of this Tribunal in the case of Jyothi Charitable Trust (60 taxmann.com 165) and the case of ITO (Exemption) Vs. Shraddha Trust in ITA No.899/Bang/2016 dated 7/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 164 ITR 439/[1986] 29 Taxmann 476 (Raj) and CIT Vs. Plot Swetamber Marli Pujak Jain Mandal [1995] 211 ITR 293 (Guj.). In CIT Vs. Institute of Banking Personnel Selection [2003] 264 ITR 110/131 Taxman 386 (Bom.) it was held that in case of charitable trust whose income is exempt under s. 11, excess of expenditure in the earlier years can be adjusted against income at subsequent years and such adjustment would be application of income for subsequent years and that depreciation is allowable on the assets the cost of which has been fully allowed as application of income under 11 in past years. in Govindu Naickcr Estate v. Asst. DIT [2001] 248 ITR 368/[1999] 105 Taxman 719 (Mad), the Hon'ble Madras High Court held that the income of the trus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adjusted can only be expenditure on religiousand charitable purposes and no other. The High Court relied on the decision in the case of Society of Sisters of ST. Anne (supra ). Respectfully following the ratio laid down in the above decision we dismiss the ground of appeal raised by the revenue. 3.4.2 Following the decision of the co-ordinate bench in the case of Shraddha Trust in ITA No.899/Bang/2016 dated 7/4/2017 (Supra), we dismiss the ground No.1(a) to (c) raised by the Revenue and uphold the order of the ld CIT(A) in directing the AO to allow carry forward of excess expenditure for adjustment against income of subsequent years. 4. In the result, Revenue s appeal for asst. year 2013-14 is dismissed, Order pronounc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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