2012 (10) TMI 1196

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....d a total income of Rs. Nil in its computation of income filed along with the return of income and not deficit whatsoever was claimed by the assessee in its return of income." 2."On the facts and in the circumstances of the case, and in law, the Ld.CIT(A), Mumbai erred in ignoring the decision of the Hon'ble Supreme Court held in the case of Goetze India Ltd. vs. CIT (2006) 24 ITR 323 wherein the AO has no power to entertain the claim of the assessee made otherwise. In case assessee has to make a claim, only option is to file revised return." 3. On the facts and in the circumstances of the case, and in law, the Ld.CIT(A), Mumbai erred in directing the AO to carry forward the deficit of ₹ 2,78,81,409/- to the subsequent year ignori....

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....urred a sum of ₹ 11.58 Crores for the purposes of the trust. As per the claim made by the assessee, it was permitted to accumulate/set-aside 15% of the gross-receipts for application for the purposes of the trust. Accordingly, a claim amounting to ₹ 1.55 Crores (i.e.,15% of the gross receipts) was made u/s. 11(1)(a) of the Act. As per the assessee, after considering the accumulate/set aside sum and the additional sum spent by it over accumulation, it was entitled to carry forward the deficit of ₹ 2.78 Crores for setting off against future receipts of subsequent years. AO rejected the claim made by the trust for carry forwarding of the said deficit i.e. of ₹ 2.78 Crores. 3. Assessee preferred an appeal before the Fir....

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....e adjusted against income in the subsequent year and such adjustment has to be treated as application of income in the subsequent year. Thus the assessee would be entitled for carrying forward of deficit to subsequent year, which would be treated as application of income in that year. However, in computing the deficit, addition @ 15% of the gross receipt cannot be allowed as such accumulation is permissible only when the expenditure is less than the income which is not so in this case. Therefore, the deficit available for carry forward to the subsequent year will be only ₹ 75,58,503/-. This view is also supported by the decision of the Tribunal in the case of the L.N.M. Foundation in ITA No. 4422/M/05 It is, therefore held that the as....