| |
| The Tax Publishers2020 TaxPub(DT) 3678 (Karn-HC) : (2020) 426 ITR 0364 INCOME TAX ACT, 1961
Section 11
Income derived from trust property had to be computed on commercial principles and if commercial principles were applied, then adjustment of expenses incurred by trust for charitable and religious purposes in earlier years against income earned by trust in subsequent year would to be regarded as application of income of trust for charitable and religious purposes in subsequent year.
|
Charitable trust - Exemption under section 11 - Allowability of set-off of excess expenditure against income of future assessment year -
Question for consideration was whether set-off of excess/expenditure/application pertaining to relevant assessment year and earlier years against income of future assessment year was allowable in the hands of charitable trust.Held: Income derived from trust property had to be computed on commercial principles and if commercial principles were applied, then adjustment of expenses incurred by trust for charitable and religious purposes in earlier years against income earned by trust in subsequent year would to be regarded as application of income of trust for charitable and religious purposes in subsequent year.
Followed:CIT (Exemptions) v. Ohio University Christ College (2018) 408 ITR 352 (Karn) : 2018 TaxPub(DT) 7055 (Karn-HC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2012-13
IN THE KARNATAKA HIGH COURT
 SUBSCRIBE FOR FULL CONTENT
OR Try Reload the Page |