THE ASSISTANT COMMISSIONER OF INCOME TAX (EXEMPTIONS) CIRCLE-1, MANGALORE vs. M/S T A PAI MANAGEMENT INSTITUTE, MANIPAL

ITA 1367/BANG/2018Status: DisposedITAT Bangalore29 March 2019AY 2015-164 pages

In favour of the assessee: the Revenue's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the issue was squarely covered by the judgment of the jurisdictional High Court. Therefore, following the High Court's decision, the appeal filed by the Revenue was dismissed.

What were the facts?

The Revenue appealed against an order of the CIT(A) concerning the assessment year 2015-16. The assessee argued that the issue was settled by a Karnataka High Court judgment regarding carrying forward of losses for set-off against the income of a charitable trust.

What were the issues?

Whether losses from earlier years can be carried forward and set off against the income of a charitable trust in the current year, based on commercial principles and established judicial precedents.

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

CIT v. Institute of Banking Personnel Selection
264 ITR 110 · 2003 · HC
398 citing

Income Tax Appellate Tribunal, BENGALURU BENCH B, BENGALURU

Before: SHRI. A. K. GARODIA

For Appellant: Shri. M. Sridhar Kamath, CA

For Respondent: Ms. Neera Malhotra, CIT - DR

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 :

ITA.1367/Bang/2018 Page - 2

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.

ITA.1367/Bang/2018 Page - 4

In the result, appeal of the Revenue is dismissed.

Order pronounced in the open court on 29th day of March, 2019.

Recent GST High Court judgments

Search GST case law →