Carry forward of excess of expenditure over income allowable in case of trust

ITO Vs  Kaivalya Education Foundation (ITAT Mumbai)

Conclusion: Assessee-trust was entitled to claim excess expenditure over income being deficit to be carried forward for setting it off in subsequent years as income derived from  trust property had  to be computed on commercial principles and if commercial principles were applied then adjustment of expenses incurred by trust for charitable and religious purposes in  earlier years against income earned in subsequent year would be regarded as application of income in the subsequent y

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