2015 (10) TMI 2416

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....income i.e. for the assessment year 2009-10. 2. Brief facts of the case are that the assessee, an AOP(Trust), filed its return of income for the assessment year 2009-10 on 31/3/2010 declaring 'nil income. The said return was processed u/s 143(1) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] on 8/3/2011 resulting in refund of Rs. 5,78,420/-. Subsequently, during the assessment proceedings u/s 143(3), specific details were called for on various issues. The assessee's representative appeared and filed submissions, documents etc., On perusal of the details filed by the assessee, the AO observed that an amount of Rs. 3,95,90,827/- was claimed to relate to academic year 2008- 09 though this amount was recei....

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....d supra). Copies of the said orders are also filed before us. 5. On a consideration of the rival contentions and the material on record and also the decision of the Tribunal, we find that the Tribunal has considered the issue at length and in para.13 of its order, it has held as under: "13. Considering the rival submissions we are of the view that all the appeals preferred by the revenue is to be allowed. The assessee is relying on the decision of the Bombay High Court in the case of Institute of Banking (supra) whereas the revenue is relying on the decision of the Tribunal, Bombay Bench in VII ITO v. Trustees of Sathya Sai Trust in (1990) 33 ITD 320. In this case the Tribunal held the deficit arising as a result of excess spending for ch....

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.... in the earlier years and the said expenses are adjusted against the income of a subsequent year, the income of such subsequent year can be said to be applied for charitable or religious purposes in the year in which such adjustment takes place. In other words, the set-off of excess of expenditure incurred over the income of earlier years against the income of a later year will amount to application of income of such later year. The above is the position of law as held in the case of CIT Vs. Maharana of Mewar Charitable Foundation 164 ITR 439 (Raj) CIT Vs. Shri Plot Swetamber Murti Pujak Jain Mandal 211 ITR 293 (Guj.). In CIT Vs. Institute of Banking Personnel Selection 264 ITR 110 (Bom), it was held that in case of charitable trust whose i....