2016 (6) TMI 1345

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Revenue by: Smt. Vinita Menon (DR) Assessee by: Dr. K. Shivaram(Sr. Counsel) ORDER Pawan Singh, 1. The present appeal is filed by the Revenue against the order of CIT(A)-1, Mumbai dated 08.02.2013 raising the following Grounds of appeal: 1. That on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the AO to allow the deficit of ₹ 32,76,502/- (on account of excess of expenditure over income) to be carried forward without appreciating the fact that this would have the effect of granting double benefit to the assessee, first as 'accumulation' of income u/s 11(1)(a) or as corpus donation u/s 11(1)(d) in the earlier years or current year and then as 'applica .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eal before the CIT(A) and succeeded therein. Aggrieved by the order of CIT(A), the Revenue has filed the present appeal before us. 3. We have heard Departmental Representative (DR) for Revenue and Authorised Representative (AR) for assessee and perused the material available on record. Ld. DR argued that Ld DIT wrongly given the relief to the assessee and prayed that order of the AO may be restored. Ld AR for assessee argued that this case is squarely covered by the decision of Bombay High Court in CIT vs. Institute of Banking Personnel Selection (IBPS)(supra). We have seen that Ld. CIT(A) while allowing the appeal of the assessee made the followed observations: I have carefully considered the submissions of the appellant, assessment .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... Trust, their income was assessable under self-contained code mentioned in section 11 to section 13.of the Income-tax Act and that the income of the Charitable Trust was not assessable under the head profits and gains of business under section 28 in which the provision for carry forward of losses was relevant. That, in the case of a Charitable Trust, there was no provision for carry forward of the excess of expenditure of earlier years to be adjusted against income of subsequent years. We do not find any merit in this argument of the Department. Income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applied then adjustment of expenses incurred by the Trust for charitabl .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X