2015 (12) TMI 607

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....titled to carry forward expenditure incurred in excess of its income for setting off against income of the succeeding years? 3. The assessee is a trust registered u/s. 12A of the Act. For the A.Y. 2011-12, the assessee filed a return of income showing application of income by more than Rs. 3,08,66,139 of its receipts. The assessee also had a carry forward unabsorbed deficit of Rs. 25,78,08,575 from A.Ys. 2005-06 to 2010-11. The unabsorbed current deficit and unabsorbed deficit for the A.Ys. 2005-06 to 2010-11 were sought to be carried forward for setting off and on treatment as application of income in the subsequent assessment years. The income declared in the return of income was NIL. 4. The issue is with regard to claim of assessee....

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....014. iii) Academy of General Education, Manipal, in ITA No. 75/UDP/CIT(A)MNG/10- 11, dated 14.3.2013.. iv) Dr.T.M.A. Pal Foundation, Manipal in ITA No. 76/UDP/CIT(A)MNG/12-13, dated 14.3.2013. Respectfully following the decision of the Jurisdictional ITAT, which is binding and following my own decisions in the above cases, I hold that, the appellant's current year's unabsorbed deficit amounting to Rs. 3,08,66,139/- along with brought forward unabsorbed deficit of Rs. 25,78,08,575/- to be carried forward to the subsequent assessment years to set off the same as application of income. Hence, the first grounds of appeal is allowed." 6. Aggrieved by the order of CIT(A), the Revenue has filed the present appeal before the Tribunal. ....

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....h 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 income is exempt under s. 11, excess of expenditure in the earlier years can be adjusted against income of subsequent years and such adjustment would be application of income for subsequent years and that depreciation is allowable on the assets the cost of which has been fully allowed as application of income under s. 11 in past years. In Govindu Naicker Estate VS. ADIT 248 ITR 368 (Mad), the Hon'ble Madras High Cour....