TaxTMI 
TaxTMI 
2022 (3) TMI 80
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....for the assessment year 2015-16. 2. In this appeal, the Revenue has raised the following grounds:- "Whether On the facts and in the circumstances of the case and in law, the Ld.CIT(A) is justified in allowing the assessee to carry forward the deficit, being excess of expenditure over receipts, to subsequent years and the same is eligible to be set-off with the income of subsequent years by relying upon the judgment of Hon'ble Bombay High Court in the case of Institute of Banking Personnel Selection (IBPS), ignoring the fact that a Review Petition has been filed before the Hon'ble Supreme Court with Diary No. 20745/2020 by the Department against the decision Subros Educational Society which upheld the validity of IBPS decision." ....
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....erits. 6. The only issue arising in the present appeal is regarding carry forward of deficit, being excess of expenditure over receipts, to subsequent years. 7. The brief facts of the case pertaining to this issue as emanating from the record are: The assessee is a public charitable trust carrying educational activities and is registered under Bombay Public Trust Act, 1950 and is also registered under the Society Registration Act, 1960. The assessee trust is also registered under section 12A of the Act since 8th November 2010 and also registered under section 80G of the Act since 5th April 2011. During the year under consideration, the assessee filed its return of income disclosing the total income of Rs. Nil. 8. During the assessment pr....
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.... u/s 11(1)(a) of Rs. 5,71,06,667/- (@15% of Rs. 38,07,11,114/- and had claimed the balance deficit, being excess of expenditure over receipts, to be carry forward to subsequent years. It is observed that Sec 11(1)(a) does not lay any specific condition for allowability of such exemption. The Section 11(1)(a) does not state that the exemption would be allowed only where the amount spent for the objects of trust is less than the gross receipts.. The exemption u/s 11(1)(a) is unfettered and is an absolute exemption and therefore, AO is not correct in making the disallowance of exempt u/s.11(1)(a) under the reason that the amount spent by the appellant during the year for object of trust is in excess of gross receipts." 10. The CIT(A) also not....