Allowing the appeal of the assessee the Tribunal held that, Charitable trust is entitle to accumulate 15% of receipts without considering the expenditure incurred on objects of Trust-when the application of income, is more than receipts of year, excess application of income i.e., expenditure in hands of assessee, can be carried forward to succeeding year. (AY. 2008 -09)
Maharshi Karve Stree Shikshan Samstha Karvenagar .v. ITO (2019) 174 ITD 591 (Pune)(Trib.)
S. 11 : Property held for charitable purposes – Accumulation of income- Application of income – Charitable trust is entitle to accumulate 15% of receipts without considering the expenditure incurred on objects of Trust – when the application of income, is more than receipts of year, excess application of income i.e., expenditure in hands of assessee, can be carried forward to succeeding year. [S. 11(1)(a), 11(2)]