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TMI Blog2021 (8) TMI 924X X X X Extracts X X X X X X X X Extracts X X X X ..... ILLAIYA, AM: This appeal by the revenue is preferred against the order of the CIT(A)-40, Delhi dated 22.12.2017 pertaining to A.Y. 2014-15. 2. The grievance of the revenue read as under :- i) Whether on the facts and in circumstances of the case and in law, Ld. CIT (A) was correct in allowing the carry forward of deficit of ₹ 6,40,70,201/- and ignoring the fact that in case of an assessee registered u/s 12A of the Act, its total income is required to be computed in accordance with section 11,12 13 of the Act and provision of these sections do not envisage set-off of deficit/loss/excess expenditure of earlier assessment year? ii) The appellant craves leave to add, to alter or amend any ground of appeal raised above ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issions the CIT(A) drawing support from the decision of the Hon ble High Court of Delhi in the case of Raghuvanshi Charitable Trust 197 Taxman 170 directed the AO to allow the set off of carry forward deficit. 7. Before us the DR strongly supported the findings of the AO. It is the say of the DR that there is no provision in the Act with regard to trust which allows for determination of loss u/s.11, carry forward of the same the subsequent years to be set off against incomes of the subsequent years. The Counsel strongly supported the findings of the CIT(A). 8. We have given a thoughtful consideration to the orders of the authorities below. The Hon ble Delhi High Court in the case of Raghuvanshi Charitable Trust 971 taxman 170 held as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arry forward of the excess of expenditure of earlier years to be adjusted against income of the 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 charitable and religious purposes in the earlier years against the income earned by the trust in the subsequent year will have to be regarded as application of income of the trust for charitable and religious purposes in the subsequent year in which adjustment has been made having regard to the benevolent provisions contained in the section 11 of the Act and that such adjustment will h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the trust/ charitable institution in earlier assessment year could be allowed to be set off against income of subsequent years by invoking Section 11 of the Income Tax Act, 1961 ? 10. And the order of the Hon ble Supreme Court held as under :- ORDER In this application filed by the Income Tax Department it is stated that Civil Appeal No. 5171 of 2016 arises out of Special Leave Petition (C) . . . CC No. 8 982/2016 was tagged with other appeals and the batch matters were decided by this Court on 13.12.2017. However, the following question was also raised in the instant appeal which was not the subject matter of those appeals: (a)Whether any excess expenditure incurred by the trust/charitable institution in earlier assessm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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