Section 11(1)(a) Excess expenditure incurred in earlier years can be set off against income of subsequent year

DCIT (E) Vs Shree Bhartimaiya Memorial Foundation (ITAT Ahmedabad) The solitary question that arises for adjudication whether the trust has incurred deficit due to excess spending on the object of the trust during the particular year and whether excess expenditure incurred in earlier years by the trust could be allowed to be set off against the income of subsequent year by invoking Section 11 of the Act. The issue is no longer res integra. The Hon’ble Gujarat High Court in CIT vs. Shri Plot Shwetamber Murti Pujak Jain Mandal (1995) 211 ITR 0293 (Guj) has rendered decision favourable to the a...