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TMI Blog2023 (11) TMI 977X X X X Extracts X X X X X X X X Extracts X X X X ..... ents for the AY 1999- 2000 to 2001-02. On going through the assessment order, the claim made by the assessee for the previous three assessment years excess application has been denied stating that it is not permissible, but the AO has not disputed the figures claimed by the assessee. We note that similar issue has been decided by the assessee in favour of the assessee in the case of ACIT v. City Hospital Charitable Trust [ 2015 (6) TMI 235 - ITAT BANGALORE] and it is held that excess application of income of the previous years can be set off from the subsequent year s surplus income. The judgment of Jyothy Charitable Trust [ 2015 (11) TMI 1295 - ITAT BANGALORE] also supports the case of the assessee. Thus assessee is eligible for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the CIT(A). Thereafter, the appeal was filed before the Tribunal giving rise to delay of 264 days. The ld. AR submitted that the delay in filing the appeal was beyond the control of the assessee as stated above. 3. After hearing both the parties, from the explanation of the delay submitted by the assessee, we are of the view that there was sufficient and reasonable cause for the delay and following the judgment of the Hon'ble Apex Court in the case of Collector, Land Acquisition Vs. MST. Katiji and Others (1987) 167 ITR 471, delay in filing the appeal before the Tribunal is condoned and the appeal is admitted. 4. The sole issue involved in this appeal is the claim of excess application of income of Rs. 61,04,954 in the earli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious purposes during the year. Since the income of the trust is itself exempt from tax, the question of loss or deficit cannot be allowed to be carry forward. The AO relied on the CBDT Circular No. 29 dated 28.3.1969 and observed that section 11(1)(a) allows exemption upto 85% of income which is applied for charitable purposes and shortfall of 85% is to be charged to tax. In view of the fact that concerned income was taken out of 85% of the income required to be applied in the year of origin, the set off of earlier years excess application was disallowed by the AO. 6. On appeal in the first round, the CIT(Appeals) observed that the as per provisions of sections 11 to 13, there is no scope for computing any loss from property held under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and Pushpavati Singhania Research Institute for Liver, Rengal Digestive Diseases v. DDIT, 29 SOT 316 (Del Trib). However, the CIT(Appeals) considered the decisions of the ITAT Bangalore in the case of M/s. Jyothy Charitable Trust in ITA No.662/Bang/2015 and Academy of Liberal Education in ITA No.687/Bang/2014 dated 20.2.2015 in favour of the assessee and therefore allowed the appeal of the assessee on this issue. 7. Against the order of the CIT(Appeals) allowing the appeal of the assessee, the revenue preferred appeal before the Tribunal. The Tribunal in the first round of proceedings vide common order dated 04.04.2017 for AYs 2008-09, 2009-10 2011-12 held that there was no finding by the CIT(A) whether expenditure incurred in ear ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nity to furnish the documents. The ld. AR submitted that these documents are now filed before the Tribunal as additional evidence which are as follows:- 1. Copy of annual report for FY 1998-99. 2. Copy of annual report for FY 1999-2000. 3. Copy of annual report for FY 2000-01. 4. Copy of computation of income for AY 1999-2000 5. Copy of computation of income for AY 2000-01 6. Copy of computation of income for AY 2001-02 10. The ld. AR submitted these documents are required to demonstrate the brought forward deficits of earlier years incurred for objectives of the trust and hence the same may be admitted for adjudication. The ld. AR submitted that the objects of the trust is similar as in the earlier years a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nied the claim of the assessee for set off earlier years. The books of accounts are audited and Form 10B has been filed and we do not find any adverse comments for the AY 1999- 2000 to 2001-02. On going through the assessment order, the claim made by the assessee for the previous three assessment years excess application has been denied stating that it is not permissible, but the AO has not disputed the figures claimed by the assessee. We note that similar issue has been decided by the assessee in favour of the assessee in the case of ACIT v. City Hospital Charitable Trust [2016] 68 taxmann.com 429 (Bang. Trib) and it is held that excess application of income of the previous years can be set off from the subsequent year s surplus income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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