TaxTMI 
TaxTMI 
2023 (7) TMI 1269
X X X X Extracts X X X X
X X X X Extracts X X X X
....sions made by the Ld. DR, the delay in filing the present appeal is hereby condoned and the appeal is admitted for adjudication. 3. In the present appeal, Department has raised the following grounds: "1. Whether on the facts and circumstances of the case and in law the Ld. CIT(A) has erred in allowing the claim of the assessee for carry forward of claim of the assessee for carry forward of deficit ? 2. Whether on the facts and circumstances of the case and in law the Ld. CIT(A) has erred in ignoring the fact that there is no express provision in the Income Tax Act, 1961 allowing such claim and without appreciating the fact that this would have the effect of granting double benefit to the assessee?" 4. Briefly the facts of the case are....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... was placed on the Hon'ble Punjab & Haryana High Court decision in case of CIT Vs. Market Committee, Karnal (ITA Nos. 238 of 2010 dt. 28/07/2010), CIT Vs. Ved Parkash Mukand Lal Educational Society (in ITA No. 6 of 2012 dt. 02/05/2012), and the decision of the Hon'ble Bombay High Court in case of CIT Vs. Institute of Banking Personnel Selection (IBPS) [2003] 131 Taxman 386(Bom). 7. The application so filed by the assessee was considered but not found acceptable to the AO. As per the AO there is no mistake which is apparent from the record. Further, it was held that the carryover of excess expenditure is not allowed as per the provisions of Section 11 & 12 of the Act. It was held that where there is a excess utilization over and above the i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n that the assessee is eligible to carry forward of the excess of the expenditure over income to attain its object in the subsequent assessment year, the assessee further relied on the decision of Hon'ble Supreme Court in case of CIT(Exemptions) Vs. Subros Educational Society [2018] 96 taxmann.com 652(SC). 11. The submissions so filed by the assessee were considered by the Ld. CIT(A). As per the Ld. CIT(A), the provisions of Section 11 and 12 have not specifically mentioned regarding the carryover of excess expenditure. However in view of the decision of the Hon'ble Supreme Court, the jurisdictional High Court and the Tribunal, it is clear that excess expenditure incurred by the assessee society in earlier years can be allowed to be set of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....k Jain Mandal, (1995) 211 ITR 293 had recorded as under- "Now coming to question No.3, the point which arises 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 the 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 utilisation 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 exce....
X X X X Extracts X X X X
X X X X Extracts X X X X
....y, we answer question No.3 in the affirmative, i.e., in favour of the assessee and against the Department." 6. In view of the judgment of the Gujarat High Court in Shri Plot Swetamber Murti Puja jain Mandal's case (supra) and Bombay High Court in Institute of Banking's case (supra), it is held that the issue herein stands concluded against the revenue. Accordingly, no question of law much less substantial question of law arises for consideration in this appeal." 14. In case of CIT Vs. Market Committee, Karnal (supra), the Hon'ble Punjab & Haryana High Court has held that the excess of expenditure incurred could also be adjusted against the income of the following years and requirement of Section 11 was only to apply the income wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... allowed to be carried over in the subsequent years. Against the said findings and direction of the Ld. CIT(A), the Revenue is in appeal before us. 16. During the course of hearing, the Ld. CIT DR relied on the findings of the AO. However, it was fairly submitted that the matter is now squarely covered by the decision of Hon'ble Supreme Court in case of CIT(Exemption) Vs. Subros Educational Society(supra). 17. The Ld. AR has relied on the decision of Hon'ble Supreme Court as well as the decisions of the Hon'ble Punjab & Haryana High Court referred supra. It was submitted that in all these decisions, the Hon'ble Courts have allowed the set off of carried forward expenditure while computing the income of the assessee for the relevant assess....