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Income Tax Appellate Tribunal, BENGALURU BENCH B, BENGALURU
Before: SHRI. A. K. GARODIA
PER LALIET KUMAR, JUDICIAL MEMBER :
The present appeal is filed by the Revenue against the order of the CIT (A), Mangaluru, dt.12.02.2018, for the assessment year 2015-16.
The Revenue has taken up the following grounds of appeal before us :
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At the outset, the Ld. AR submitted that the issue is settled by the judgment of the Hon’ble High Court of Karnataka in of 2016, dt.30.08.2018, in the matter of CIT v. M/s. Academy of General Education, wherein at para 4, it was held as under : 4. With regard to carrying forward of the losses for being set off against the income of the charitable trust for the present Assessment Year, the controversy is covered by the judgment in Commissioner of Income tax (Exemptions) and another Vs. Ohio University Christ College rendered on 17.07.2918 in ITA.No.31212016 and ITA No. 31312016, in which the Court held as under: xxxxxxx..... 18. In view of the aforesaid findings of the learned Tribunal, allowing any expenditure of the earlier year which has been brought forward and set off in the year ITA.1367/Bang/2018 Page - 3
under consideration, is a justified finding of fact based on the correct interpretation of law and the judgment relied upon by it rendered by the cognate Bench. Therefore, the same does not call for interference. A similar view was also taken by the Division Bench of Bombay High Court in Commissioner of Income- tax v. Institute of Banking (2003) 264 ITR 110, wherein the Division Bench of Bombay High Court held that the income derived from the trust property has also got to be computed on commercial principles and if commercial principles are applied, then adjustment of expenses incurred by the trust for charitable and religious purposes" in the earlier years against the income earned by the trust in the subsequent year will have to be regarded as application of income of the trust for charitable and religious purposes in the subsequent year. xxxx... In view of the controversy covered by the above decisions of this Court, we are of the opinion that the substantial question of law as suggested by the appellants does not now arise for our further consideration in the present appeal."
It was submitted by the Ld. AR that in view of the above, appeal of the Revenue is required to be dismissed.
On the other hand the Ld. DR has not disputed the legal position canvassed before us. However, it was submitted that the issue is subject to challenge before the higher authorities.
We have heard the rival submissions and perused the material on record. The grounds raised by the Revenue in the appeal is squarely covered against the Revenue. Therefore, following the judgment of the Hon’ble jurisdictional High Court, we dismiss the appeal of the Revenue.
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In the result, appeal of the Revenue is dismissed.
Order pronounced in the open court on 29th day of March, 2019.