| |
| The Tax Publishers2021 TaxPub(DT) 0305 (Bang-Trib) INCOME TAX ACT, 1961
Section 11
Income of the trust is required to be computed under section 11 on commercial principles and, therefore, excess of expenditure incurred over income of earlier years was to be carried forward and set-off against income of subsequent years.
|
Charitable trust - Exemption under section 11 - Allowability of carry forward of excess of expenditure incurred over income -
Assessee-trust sought carry forward of deficit to subsequent years. AO denied this. Held: Income of the trust is required to be computed under section 11 on commercial principles. Accordingly, excess of expenditure incurred over income of earlier years was to be carried forward and set-off against income of subsequent years and such adjustment would not be deemed as application of income in subsequent years.
Followed:CIT v. Ohio University Christ College (2018) 99 Taxmann.com 377 (Karn) : (2018) 408 ITR 352 (karn) : 2018 TaxPub(DT) 7055 (Karn-HC), CIT v. Institute of Banking (2003) 264 ITR 110 (Bom-HC) : 2003 TaxPub(DT) 1343 (Bom-HC) and ITO v. Shraddha Trust [ITA No. 889/Bang/2016) : 2020 TaxPub(DT) 7 (Bang-Trib).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. :
IN THE ITAT, BANGALORE BENCH
 SUBSCRIBE FOR FULL CONTENT
|