| |
| The Tax Publishers2020 TaxPub(DT) 0732 (Del-Trib) INCOME TAX ACT, 1961
Section 11
A trust can carry forward deficit of current year and set off the same against income of subsequent year and it would amount to application of income of trust for charitable purposes in subsequent year within the meaning of section 11(1)(a).
|
Charitable trust - Exemption under section 11 - Allowability - Carry forward of deficit of current year and set-off against income of subsequent year
Issue under consideration was whether CIT(A) was justified in allowing assessee-trust to carry forward deficit of relevant year under consideration and to set off the same against income of subsequent year. Held: Revenue failed to appreciate the provision that income has to be computed commercially even in cases covered under sections 11 and 13 and resultant loss, if any, arising due to surplus application of income has to be computed and carry forward to the next year to be set off therein. Hence, the CIT (A) was justified in allowing assessee-trust to carry forward deficit of relevant year under consideration and to set off the same against income of subsequent year.
REFERRED : DIT v. Raghuvanshi Charitable Trust & Ors. (2011) 197 Taxmann 170 (Del): 2011 TaxPub(DT) 0368 (Del-HC)
FAVOUR : In assessee's favour
A.Y. : 2012-13
 SUBSCRIBE FOR FULL CONTENT
|