Is there any provision to carry forward and set off of excess expenditure in case of trusts, like there is in other businesses?

IN THE INCOME TAX APPELLATE TRIBUNAL
 ‘A’ BENCH, CHENNAI

BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER AND
 SHRI G. MANJUNATHA, ACCOUNTANT MEMBER

ITA No.: 518/CHNY/2019
Assessment Year: 2014-15 

M/s. Rama Naick Charitable
Trust,274, T.H. Road,
Washermanpet,
Chennai – 600 021.
PAN: AAATT 0484B
Appellant 

vs.

The Income Tax Officer
(Exemptions),
Ward 2,
Chennai – 34.
Respondent)

Appellant by : Shri A. Kanagaraj, CA
Respondent by : Shri G. Suresh Periasamy, JCIT

Date of Hearing : 19.07.2021
Date of Pronouncement : 23.07.2021 

O R D E R

Per G. MANJUNATHA, AM:

This appeal filed by the assessee is directed against order of learned Commissioner of Income Tax (Appeals)-17, Chennai,dated 29.01.2019 and pertains to assessment year 2014-15. 

2. The assessee has raised the following grounds of appeal:-

1. The CIT (Appeals) is not justified in confirming the assessed income of the trust at Rs.11,38,210 as assessed by the assessing officer which is against the facts and circumstances of the case.

2. The CIT (Appeals) is not justified in confirming the exclusion of depreciation of Rs. 9,98,190 from application of the trust.

3. The CIT (Appeals) has erred in holding that the assessee's trust is not entitled to claim depreciation if there is no business activity.

4. The CIT (Appeals) is not justified in ignoring the fact that in the assessee's own case for the Asst.Year 2013-14, the CIT (Appeals) -17 has allowed the depreciation claim of the assessee as per his order dated 14.09.17 in ITA .No.280/2015-16.

5. The CIT (Appeals) has failed to appreciate the fact that the application of income u/s 11 and depreciation claimed u/s 32 are two different issues in the case of charitable trust and cannot be treated as double deduction.

6. The CIT (Appeals) is not justified in ignoring the contention of the appellant that the trust should be allowed the adjustment of excess amount spent towards charitable purposes in the earlier years against current income to determine the funds available with the appellant trust for the purpose of section 11(1) of the act and confirming the decision of the assessing officer in not allowing the setting off of the excess application / unabsorbed depreciation of earlier years against the income determined in the current assessment year.

7. For these and other reasons that may be adduced at the time of hearing, it is prayed that Justice may be rendered to the appellant by deleting the additions made by the Assessing officer and allowing the set off of excess application in the earlier years. 

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