2011 (8) TMI 1194 - AT - Income Tax

Tribunal upholds carry forward losses order for assessment year 2005-06, emphasizing consistency and trust income inclusion

Addl. C.I.T Versus M/s City Educational & Social

The Tribunal dismissed the revenue's appeal against the order allowing carry forward losses u/s 11 for assessment year 2005-06. The Tribunal upheld the ... - Issues Involved: Appeal against order allowing carry forward losses u/s 11 for assessment year 2005-06.Summary:The revenue appealed against the order of learned CIT(A) allowing the carry forward losses of the previous years u/s 11 for assessment year 2005-06. The assessee, a registered educational institution, had brought forward losses and sought to adjust them with the current year's income. The revenue contended that the income derived from property held under trust should not be included in the total income. However, the learned CIT(A) permitted the set off of losses based on past decisions and principles.In response, the learned counsel for the assessee highlighted that similar issues had been resolved in favor of the assessee in assessment years 2003-04 and 2004-05, where the revenue had accepted the orders of the CIT(A) allowing the carry forward losses. The current year's decision was based on the precedent set in those years, and the department had not challenged those orders. The revenue failed to counter this argument.The Tribunal considered the past decisions and principles cited by the CIT(A), including cases such as CIT Vs. Institute of Banking, and upheld the decision to allow the carry forward losses. The Tribunal noted that the revenue had accepted similar decisions in previous assessment years and found no reason to interfere with the CIT(A)'s order based on the principle of consistency. Consequently, the appeal of the revenue was dismissed.In conclusion, the Tribunal upheld the decision to allow the carry forward losses u/s 11 for the assessment year 2005-06, based on past precedents and principles.