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TMI Blog2022 (4) TMI 224X X X X Extracts X X X X X X X X Extracts X X X X ..... in the order passed by the ld. CIT (Appeals). Thus, the grounds raised by the Revenue are rejected. - I.T.A. No. 4171/Del/2017 - - - Dated:- 17-3-2022 - Challa Nagendra Prasad, Member (J) And Pradip Kumar Kedia, Member (A) For the Appellant : Umesh Takyar, Sr. D.R. For the Respondents : George Koshi, C.A. ORDER Per C N Prasad , JM 1. This appeal is filed by the Revenue against the order of the ld. Commissioner of Income Tax (Appeals)-40, New Delhi [hereinafter referred to CIT (Appeals)] dated 18.04.2017 for assessment year 2012-13. 2. The only grievance of the Revenue in this appeal is with respect to carry forward and set off of excess deficit pertaining to earlier years against the income of the current year. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decisions relied upon. The sole issue to be decided is as to whether the deficit of earlier years can be set off against income of the current assessment year or not. This issue has been decided in favour of the assessee by various High Courts including the jurisdictional High Court in the case of DIT Vs. Raghuvanshi Charitable Trust (supra). While allowing the claim of the assessee, the ld. CIT (Appeals) observed as under:- 4.7 For assessment year 2011-12, my ld. predecessor in appeal No. 541/2013-14 has also allowed carry forward and set off of deficit of a lesser amount. Since as per the decision of the Hon'ble Supreme Court in the case of Commissioner of Income-tax vs. Programme for Community Organization (supra), the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entioned 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 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... necessary to go into this issue once we have decided the question of law in favour of the assessee. 4.9 The appellant has also submitted that the Assessing Officer has failed to take cognizance of the option exercised in terms of clause (2) of the Explanation to section 11(1). It is seen from the assessment records that the assessee had filed a letter exercising the option in terms of clause (2) of the Explanation of section 11(1) along with the return of income and the said option was also mentioned in SI. No. 6 (iii) of Part B the return of income. The said option was subsequently revised to include the income to be applied in the next year. The Assessing Officer during the proceedings under section 143(3) has not taken any cognizan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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