DCIT, CHANDIGARH vs. M/S THE TRIBUNE TRUST, CHANDIGARH

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ITA 440/CHANDI/2014Status: DisposedITAT Chandigarh23 March 2018AY 2008-099 pages

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

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the claim for permissible accumulation must be based on actual accumulation and not an arbitrary calculation exceeding the income earned. Therefore, the loss claimed on account of excess accumulation was disallowed.

What were the facts?

The assessee, a trust, claimed exemption under Section 10(23C)(iv) and sought to carry forward losses. The Assessing Officer restricted the exemption to the actual surplus income, disallowing the claimed loss which arose from an excessive claim for permissible accumulation.

What were the issues?

Whether a trust claiming exemption under Section 10(23C)(iv) can claim carry forward of losses arising from an excessive claim for permissible accumulation beyond the actual income earned.

Which sections of the Income-tax Act were involved?

Section 10(23C)(iv)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(3)Show list

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Income Tax Appellate Tribunal, DIVISION BENCH ‘B’, CHANDIGARH

Before: SHRI SANJAY GARG & MS.ANNAPURNA GUPTA

For Appellant: Shri Manu Malik, CIT DR
For Respondent: Shri Tej Mohan Singh, Adv
Hearing: 19.03.2018Pronounced: 23.03

per the section refers only to the actual accumulation.

Since as per the facts of the present case the assessee has

claimed deduction of accumulation in excess of the actual

amount,the same we hold is not allowable to the assessee

.The loss claimed to be carried forward by the assessee on

account of the same is therefore also disallowed. The

decision relied upon by the Ld.CIT(Appeals) in the case of

Maharana of Mewar Charitable Foundation (supra), the

decision of the Hon'ble Gujarat High Court in the case of

Shri Plot Swetamber Murti Pujak Jain Manal (supra) are of

no assistance to the assessee since the same we find are

distinguishable on facts as in all the said case, the loss

incurred by the assessee was actual with the expenditure

exceeding the gross receipt of the assessee and it was in

those circumstances that the courts held that the assessee

was entitled to carry forward the loss to be set off against

the income of the succeeding years.

15.

In view of the above, we hold that the assessee is not

entitled to claim carry forward of loss to the extent of

Rs.9,70,90,059/- and set aside the order of the CIT(A).

16.

In the result, the appeal of the Revenue is allowed.

Order pronounced in the Open Court.

Sd/- Sd/- (SANJAY GARG) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated : 23rd March, 2018 *Rati* Copy to: 1. The Appellant 2. The Respondent 3. The CIT(A) 4. The CIT 5. The DR Assistant Registrar, ITAT, Chandigarh

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