Case Law Details
Sindhi Youth Association Vs ADIT (ITAT Bangalore)
Introduction: The Income Tax Appellate Tribunal (ITAT) in Bangalore has issued a crucial ruling in the case of Sindhi Youth Association vs ADIT. The case revolves around the allowance for setting off earlier years’ excess application of income against subsequent year’s surplus under Section 11 of the Income Tax Act, applicable to Charitable Trusts. The tribunal also condoned a delay of 264 days in filing the appeal, considering the reasonable explanations offered by the assessee.
Detailed Subheading Wise Analysis
Delay of 264 Days Condoned by ITAT: The assessee had faced a delay of 264 days in filing the appeal before the tribunal. The reasons cited for the delay were deemed reasonable, including health issues of an employee and changes in the organizational structure.
The Core Issue: Excess Application of Income: The main point of contention was whether the excess application of income from earlier assessment years (1999-2000, 2000-01, & 2001-02) could be adjusted against the current year’s surplus. The Assessing Officer (AO) had disallowed this claim initially.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
