S. 11 : Property held for charitable purposes – Carry forward of deficit – Excess expenditure incurred by trust in earlier years – Set off against income of subsequent years – Permissible – Appeal of Revenue dismissed. [S. 11(1)(a), 11(1)(d), 260A.]
The Revenue challenged the Tribunal’s order allowing the assessee–trust to carry forward the deficit and set it off against income of subsequent years. The Revenue contended that there was no express provision in the Act permitting such set off and that this amounted to double deduction. The Tribunal, following the jurisdictional High Court ruling in CIT v. Institute of Banking Personnel Selection (2003) 264 ITR 110) (Bom)(HC) upheld the assessee’s claim. The High Court noted that the issue stood squarely covered by the said judgment as well as the Supreme Court decision in CIT (E) v. Subros Educational Society (2018) 7 SCC 548 / (2022) 136 taxmann.com 236 (SC), wherein it was held that excess expenditure of earlier years can be adjusted against income of subsequent years. As the question was already settled against the Revenue, the appeal was dismissed. (ITA No. 40 of 2022, dt. 12-09-2025, (AY . 2012-13.)
CIT (E) v. Tata Education and Development Trust (Bom)(HC) www.itatonline.org .
[Coram : Hon’ble Shri Justice B. P. Colabawalla,
Hon’ble Shri Justice Amit Satyavan Jamsandekar]