Dismissing the appeal of the revenue the Court held that , excess of expenditure of earlier years adjusted against income of relevant accounting year, amounts to application of income. Accordingly adjustment will have to be excluded from the income of the trust under section 11(1)(a) .( AY. 2011-12)
CIT v. Chalassani Education Trust. (2019) 412 ITR 343 (Karn)(HC)
S. 11 : Property held for charitable purposes – Application of income- Excess of expenditure of earlier years adjusted against income of relevant accounting year, amounts to application of income — adjustment will have to be excluded from the income of the trust under section 11(1)(a) .[ S.11(1)(a),12 ]