2011 (8) TMI 1194

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.... ORDER PER RAJPAL YADAV, JM: The revenue is in appeal before us against the order of learned CIT(A) dated 21st September, 2010 passed for assessment year 2005-06. In the solitary ground of appeal, revenue has pleaded that learned CIT(A) has erred in law and on facts in allowing the carry forward losses of the previous years ignoring the provisions of section 11 which stipulates that income d....

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.... to adjust the current year income against the brought forward losses and also permitted to carry forward the loss. The revenue has not challenged orders of the CIT(A) in assessment years 2003-04 and 2004-05 which were decided by the learned CIT(A) vide order dated 31st August, 2006. The assessee sought an information to this effect under Right to Information Act from the Assessing Officer. He pla....

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....ntention of the learned counsel for the assessee. 4. We have duly considered the rival contention and gone through the record carefully. Learned CIT(A) while permitting the assessee to claim set off against the brought forward losses has put reliance upon the following decisions:- "CIT Vs. Matri Sewa Trust, 242 ITR 20 (Mad.); CIT Vs. Institute of Banking, 264 ITR 110 (Bom.); CIT Vs. Maharana....

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....t and gains of business" u/s 28 in which the provision for carry forward of losses was relevant. According to the revenue, there was no provision for carry forward of the excess of expenditure of earlier years to be adjusted against the income of subsequent years. This argument was rejected by the Bombay High Court and it has been held that income derived from the trust property has also got to....