2018 (2) TMI 2062

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..... Court and want to keep the issue alive, the order of CIT(A) is challenged. We find that the Revenue is clearly accepting that the order of CIT(A) is covered by the decision of Hon ble Bombay High Court and respectively following the same, we confirm the order of CIT(A) and dismiss this appeal of Revenue.
SRI MAHAVIR SINGH, JM AND SRI RAJESH KUMAR, AM Revenue by : Pooja Swaroop, DR Assessee by : Dalpat Shah, AR O R D E R PER MAHAVIR SINGH, JM: This appeal by the Revenue is arising out of the order of Commissioner of Income Tax (Appeals)-I, Mumbai, [in short CIT(A)] in appeal No. CIT(A)-I/IT/E-11(1)/90/2013-14 dated 21-06-2016. The Assessment was framed by Asst. Director of Income Tax (Exemption)- II(1), Mumbai (in short ADIT or AO .....

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..... 0,625/- as deficit in the computation of income but according to him is not allowable to be carried forward for setting off against income of future years. Aggrieved assessee preferred the appeal before CIT(A). 4. The CIT(A) following the decision of Hon'ble Bombay High Court in the case of CIT vs Institute of Banking Personnel Selection (IBPS) 264 ITR 110 (Bom), allowed the claim of the assessee by observing in Para 5.2 as under: - "5.2 I have considered the facts and circumstances of the case, gone through the assessment order of the A.O and the submissions of the appellant and also discussed the case with the AR of the appellant. The contentions and submissions of the appellant are being discussed and decided here in under: The appe .....

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..... able 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 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 applicati .....

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