https://www.taxtmi.com/caselaws?id=451101 The ITAT Delhi ruled in favor of a charitable trust regarding set-off of excess utilization of funds from earlier years against current year surplus. The tribunal held that while there is no provision for carry forward of excess expenditure in earlier years, when computing trust income on commercial principles, adjustment of prior year charitable expenses against subsequent year income constitutes application of income for charitable purposes. This adjustment must be excluded from trust income under section 11(1)(a). The AO was directed to allow the set-off claim and permit accumulation of income under section 11(2). en-us Mon, 18 Mar 2024 00:00:00 +0530 Wed, 20 Mar 2024 09:19:01 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=451101 The ITAT Delhi ruled in favor of a charitable trust regarding set-off of excess utilization of funds from earlier years against current year surplus. The tribunal held that while there is no provision for carry forward of excess expenditure in earlier years, when computing trust income on commercial principles, adjustment of prior year charitable expenses against subsequent year income constitutes application of income for charitable purposes. This adjustment must be excluded from trust income under section 11(1)(a). The AO was directed to allow the set-off claim and permit accumulation of income under section 11(2). Case-Laws Income Tax Mon, 18 Mar 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=451101