| The Tax Publishers2020 TaxPub(DT) 5470 (Mum-Trib) INCOME TAX ACT, 1961
Section 11(1)(a)
Exemption under section 11(1)(a), i.e., 15% of income is unfettered, and not subject to any conditions. Accordingly, even if entire income had been applied on the object of the trust as application of income and there was no income left to be accumulated, rather there was deficit in instant situation too assessee was entitled for accumulation or seting apart under section 11(1)(a) at the rate of 15% of gross income.
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Charitable trust - Exemption under section 11 - AO denied benefit of 15% accumulation on account of deficit -
Assessee-trust claimed exemption under section 11. AO denied entitlement towards general accumulations to the extent of 15% contemplated under section 11(1)(a) as amount applied for the object of trust already surpassed income derived from property held under trust. Held: Exemption under section 11(1)(a), i.e., 15% of income is unfettered, and not subject to any conditions. Accordingly, even if entire income had been applied on the object of the Trust as application of income and there was no income left to be accumulated, rather there was deficit in instant situation too assessee was entitled for accumulation or seting apart under section 11(1)(a) at the rate of 15% of gross income.
Followed:Lalji Velji Charitable Trust v. ITO (Exemptions) ITA Nos. 5322 and 5323/Mum/2016 for assessment years 2010-11 & 2011-12 respectively, dated 28-2-2018 : 2018 TaxPub(DT) 1579 (Mum-Trib) and ITO v. Utthan Sewa Sansthan ITA No. 2017/Ahd/2016 for assessment year 2012-13, dated 24-1-2019 : 2019 TaxPub(DT) 2562 (Ahd-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2014-15
IN THE ITAT, MUMBAI BENCH
M. BALAGANESH, A.M. & RAVISH SOOD, J.M.
IRIS Knowledge Foundation v. DIT
ITA No. 3408/Mum/2018
10 December, 2020
In favour of Assessee.
Assessee by: Ronak Doshi
Revenue by: Shreekala Pardeshi
M. Balaganesh, A.M.
This appeal in ITA No. 3408/Mum/2018 for assessment year 2014-15 arises out of the order by the learned Commissioner (Appeals)-1, Mumbai in Appeal No. Commissioner (Appeals)-I/IT/ITO(E)-1(3)/147/2016-17, dated 26-2-2018 (ld. CIT (A) in short) against the order of assessment passed under section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as Act), dated 25-10-2016 by the learned Income Tax Officer (E)-1(3), Mumbai hereinafter referred to as learned assessing officer).
2. The only issue to be decided in this appeal is as to whether the learned Commissioner (Appeals) was justified in confirming the action of the learned assessing officer in denying the claim of the assessee for carry forward of the deficit of excess of expenditure over income in the facts and circumstances of the instant case.
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