AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (11) TMI 1155
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....c services. It filed its return of income on 30.09.2014 declaring total loss at Rs. 10,87,42,880/-. The Assessing Officer completed the assessment u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') on 03.03.2015 assessing the total income at Rs. 7,04,69,855/- after making disallowance of depreciation amounting to Rs. 4,50,27,084/-. 3. Subsequently, the Assessing Officer noted that as per provisions of section 11 of the Act, the assessee is entitled to accumulate income u/s 11(1)(a) of the Act to the extent of 15% for future years, however, such accumulation is permissible only to the extent of availability of surplus. He noticed that in the case of assessee though the surplus available with the assessee was onl....
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....ption and the application of section 11(2) of the Act does not extend to nullify the absolute exemption. Similar view has been taken by the Hon'ble Supreme Court in the case of CIT vs. Programme for Community Organization reported in 248 ITR 1 (SC). The decision of the Pune Bench of the Tribunal in the case of Maharshi Karve Stree Shikshan Samstha vs. ITO reported in (2019) 101 taxmann.com 175 (Pune - Trib.) was also brought to the notice of the Ld. Addl/JCIT(A). 6. Based on the submissions and the arguments advanced by the assessee, the Ld. Addl/JCIT(A) directed the Assessing Officer to allow the deduction u/s 11(1)(a) of the Act on 15% of the receipt of the trust and allow the application of income after the remaining amount by observi....
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....nds of appeal. 8. The Ld. DR referring to the grounds of appeal submitted that the Ld. Addl/JCIT(A) while deciding the issue in favour of the assessee has relied on the decision of the Pune Bench of the Tribunal in the case of Maharshi Karve Stree Shikshan Samstha vs. ITO (supra) which has not been accepted by the department and an appeal has been filed before the Hon'ble Bombay High Court which is still pending. Therefore, the order of the Ld. Addl/JCIT(A) be reversed and that of the Assessing Officer be restored. 9. The Ld. Counsel for the assessee on the other hand while supporting the order of the Ld. Addl/JCIT(A) submitted that the issue has been decided by the Ld. Addl/JCIT(A) by following the decisions of the Hon'ble Supreme Co....
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....the receipt of the trust and allow the application of income after the remaining amount, the reasons of which have already been reproduced in the preceding paragraphs. While doing so, he relied on the decisions of the Pune Bench of the Tribunal in the case of Maharshi Karve Stree Shikshan Samstha vs. ITO (supra) which in turn has followed the decision of the Hon'ble Delhi High Court in the case of DIT vs. Raghuvanshi Charitable Trust and Ors. reported in (2011) 197 Taxman 170 (Delhi) according to which the exemption u/s 11(1)(a) of the Act i.e. 15% is an absolute exemption and the application of section 11(2) of the Act does not extend to nullify the absolute exemption. Further, the Coordinate Bench of the Tribunal while deciding the issue ....
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....lication of income after the remaining amount. The grounds raised by the Revenue are accordingly dismissed. 11. In the result, the appeal filed by the Revenue is dismissed. Order pronounced in the open Court on 4th November, 2025. ============= Document 1 6. Discussion and decision- The submissions made by appellant and the reason of addition as mentioned in the assessment order are carefully examined. The facts of case are that the appellant had total receipt of Rs. 52,39.07,825/- during the year under consideration. The amount applied for charitable purpose u/s 11 were Rs. 51,57,91,506/ -. The remaining income was Rs. 81,16,319/ -. The AO restricted allowance u/s 11(1)(a) to the extent of surplus i.e. Rs. 81,16,319/ -. The A....
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....sion of the Hon'ble Supreme Court in the case of Programme for Community Organization (supra) that a charitable trust was entitled to accumulate 15% of the receipts without considering the expenditure and application made on the objects of trust. The CIT(A) applying the said proposition has allowed the claim of assessee. We find no merit in the grounds of appeal raised by Revenue in this regard and we uphold the method of computation of deficit applied by CIT(A) in line with the provisions of section 11(1)(a) of the Act. 17. Now, coming to the second aspect of the issue raised before us i.e. whether in the instant assessment year the application of income was more than the receipts of the year, can the excess application of income i.e. e....