2012 (1) TMI 203

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....Per : HONOURABLE MS JUSTICE SONIA GOKANI) 1. The appellant-Revenue, being aggrieved by the order of Income Tax Appellate Tribunal, Ahmedabad dated 11.6.2010 ("Tribunal" for short) has preferred the present Appeal under section 260-A of the Income Tax Act, 1961 (hereinafter referred to as "the Act") proposing the following questions of law for determination of this Court: "Whether on th....

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....Year 2006-07, in the case of respondentassessee, assessment was completed on total income of Rs. 6,04,34,990/-. 3. When challenged before CIT(Appeals), it deleted the amount on the ground that the grant received from the Govt. of Gujarat of Rs. 34,96,48,719/- was permissible to be carried forward and set off against the income of the succeeding year. 4. Revenue challenge the order of CIT(App....

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....h the income had arisen. The word "applied" means "to put to use" to turn to use" or "to make use" or "to put to practical use". Having regard to the provisions of section 11 of the Act, it is clear that when the income of a trust is used or put to use to meet the expenses incurred for religious or charitable purposes, it is applied for charitable or religious purposes. The said application of the....

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....plied, it is but natural that the adjustment of the expenses incurred by the trust for charitable and religious purposes in the earlier year against income earned by the trust in the subsequent year will have to be regarded as application of income of the trust for charitable and religious purposes in the subsequent year in which such adjustment has been made having regard to the benevolent provis....