2018 (5) TMI 1693

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.... the case and in law, the Id. CIT(A) was right in directing the AO to allow carry forward off the deficit of earlier years to be set off of the surplus of current year income & subsequent years and consider such adjustment as application of income for charitable purpose?" 2. "Whether on the fact and circumstances of the case, the Id. CIT(A) erred in allowing the c/f of deficit amounting to Rs. 57,38,572/- against income for subsequent assessment years without appreciating the facts that the assessee has computed the tax under head " Income from other sources" which is not allowable as per the normal provision of the I.T. Act as well as Section 11 of the I.T. Act.?" 3. "Whether on the fact and circumstances of the case, the Id. CIT(A) ....

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.... Act?" 7. "Whether on the fact and circumstances of the case, the Id. CIT(A) erred in allowing the c/f of deficit of earlier year amounting to Rs. 57,38,572/- against income for subsequent assessment years relying on the decision of the Honfale Bombay High Court in the case of CIT Vs. Institute of Banking Personnel Services reported in 264 ITR 110 (Bom) without appreciating the facts that the decision of the Hon'ble Bombay High Court in the case of CIT Vs. Institute of Banking Personnel Services is distinguishable to the facts of the assesse's case?" 3. The common issue raised in all the Grounds of appeal is against the action of CIT(A) directing the AO to allow carry forward off the excess expenditure in the earlier year for s....

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....s for consideration is : whether excess of expenditure in the earlier years can be adjusted against the income of the subsequent year and whether such adjustment should be treated as application of income in subsequent year for charitable purposes? It was argued on behalf of the Department that expenditure incurred in the earlier years cannot be met out of the income of the subsequent year and that utilization of such income for meeting the expenditure of earlier years would not amount to application of income for charitable or religious purposes. In the present case, the Assessing Officer did not allow carry forward of the excess of expenditure to be set off against the surplus of the subsequent years on the ground that in the case of a Ch....

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....hat the learned CIT(A) has rightly fallowed the above judgement of the Hon'ble Bombay High Court and directed the A.O. lo allow the carry forward and set off of deficit after due verification of facts. We uphold the order of learned CIT(A). 7. In the result, the appeal filed by the revenue is dismissed." 7. We therefore, following the decision of the Co-ordinate Bench in assessee‟s own case, we dismiss the appeal of the Revenue. C.O.No.115/Mum/2015 8. The issues raised in Cross Objection No.1 to 3 are in support of the order of CIT(A) allowing the carry forward of the deficit / excess expenditure of the earlier years to be set off against the income of current year and subsequent years. Since we have already dismissed the ....