2018 (12) TMI 825

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....arious High Court and Tribunal judgments cited before him which are a direct authority on the issue at hand and has thereby violated the principles of judicial discipline. 2. That the Ld. CIT(A) has failed to appreciate that income has to be computed commercially even in cases covered u/s. 11-13 of the Income Tax Act, 1961 and resultant loss, if any, arising due to surplus application of income, has to be computed and carried forwards to next year to be set off therein accordingly. 3. The Ld. CIT(A) has also failed to appreciate that neither section 11 nor section 72 of the Income Tax Act, 1961 have a mutual rider for computation of income or for its carry forward and set off and hence the impugned order deserves to be qua....

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....or the assessee has stated that Ld. CIT(A) has failed to appreciate that income has to be computed commercially even in cases covered u/s. 11-13 of the Income Tax Act, 1961 and resultant loss, if any, arising due to surplus application of income, has to be computed and carried forward to next year to be set off therein accordingly. He further submitted that the issue in dispute is squarely covered by the Coordinate Bench common decision dated 10.8.2015 in ITA No. 4056/Del/2014 (AY 2009-10) in the case of M/s City Educational and Social Welfare Society vs. Additional Commissioner of Income Tax and in assessee's own case in ITA No. 4326/Del/2014 (AY 2008-09) title M/s KSD Charitable Trust vs. Additional Commissioner of Income Tax, Range-1, Me....

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....hat the Tribunal in assessee's own case for the AY 2005-06 (Supra) by following the judgment of the Hon'ble Bombay High Court in the case of CIT Vs. Institute of Banking (reported in 264 ITR 110 (Bom.) ) has decided the issue the similar in favour of the assessee. The relevant finding of the coordinate Bench order reads as follows:- "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 of Mewar Charitable Foundation 16....

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....religious purpose. The learned CIT(A) has followed this decision apart from others referred above. The order of the CIT(A) in three assessment years have been accepted by the revenue. In this year, the learned CIT(A) has simply based his decision on the finding given in earlier assessment years. Keeping in view the principle of consistency, we do not see any reason to interfere in the order of learned CIT(A). In view of the above discussion, the appeal of the revenue is dismissed. 6. In result, the appeal of the revenue is dismissed." 6. We further note that the Hon'ble Supreme Court of India in the case of CIT(E) vs. Subros Educational Society (2018) 303 CTR 0001 (SC) vide its Order dated 16.4.2018 has adjudicated the similar a....