The Assessee claimed an exemption u\/s 11(1)(a) at the rate of 15% of its gross receipts and claimed balance deficit being excess of expenditure over receipts to be carry forward to subsequent years. AO rejected the claim of the Assessee u\/s 11(1)(a) on the basis that since there was excess of expenditure over gross receipts the assessee is not entitled to any\u00a0 accumulation\u00a0 as there is no surplus receipts left after application for current year. Accordingly, no carry forward of deficit was allowed to be carried forward to subsequent years either. CIT(A) held that the claim u\/s 11(1)(a) is unfettered and the said section does not lay any specific condition for allowability\u00a0 of such exemption and set aside AO\u2019s order. The ITAT upholding the CIT(A)\u2019s order further relied upon the order of Supreme Court in case of Subros Educational Society [(2018) 303 CTR 1 (SC)\u00a0 held that any excess expenditure incurred by trust in earlier assessment year\u00a0 would be allowed to be set-off against income of the subsequent years. (AY 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 11 : Property held for charitable purposes-Accumulation of income-Amount spent on the objects of the Trust-Excess of expenditure-Carry forward to subsequent years. [S. 11(1)(a)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-29553","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-7GF","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29553","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=29553"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29553\/revisions"}],"predecessor-version":[{"id":29554,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/29553\/revisions\/29554"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=29553"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=29553"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=29553"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}