2010 (6) TMI 808

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....pondent : Shri P.K.Mitra, Sr. DR O R D E R PER V.K. GUPTA, A.M. This appeal filed by the assessee arises out of order of the Ld. CIT(A)-I, Bhopal, dated 06.06.2008, for the assessment year 2004-05. 2. We have heard both the parties and have also perused the material available on record. 3. In this appeal, the assessee has raised following grounds :- 1. That on the facts and in th....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... as capital expenses had been claimed by the assessee society u/s 11 /12 of the Act. Aggrieved by this, the assessee preferred an appeal before the ld. CIT(A), wherein it was mentioned that the AO did not give any reason in the assessment order, while making the assessment at Nil income. Thus, the AO's action was not justified. The ld.CIT(A), however, held that there could not be loss in absolute ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....come, then the assessee could avail excess amount spent/applied for in subsequent year as set off against income of that year. For this proposition, the ld. counsel relied on following judicial decision :- (i) CIT vs. Sri Plot Swetambar Murti Pujak Jain Mandal, 211 ITR 293 (Guj) (ii) CIT vs. Maharana of Mewar Charitable Foundatin, 164 ITR 439 (Raj) (iii) CIT vs. Matrisewa Trust, 242 ITR 2....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nsideration. In our view, such excess of expenditure has resulted in view of depreciation and application of income in capital assets for the purpose of objects of the assessee trust/society. We further find that incurrence of such expenditure for the purposes of objects of the Trust/society is not in dispute. Hence, excess expenditure incurred for charitable purposes in the year under considerati....