ITAT Allows Excess Application Set-Off Because Books of Account Establish Charitable Expenditure

Advertisement Nizamia Hyderabad Womens Association Trust Vs ITO (ITAT Hyderabad) The Income Tax Appellate Tribunal (ITAT), Hyderabad, allowed the appeal of a charitable trust for statistical purposes and held that excess application of income incurred in earlier years can be adjusted against the income of a subsequent year, provided the claim is supported by the trust’s books of account and records. The Tribunal remanded the matter to the Assessing Officer (AO) only for factual verification of the claim. The assessee, a trust registered under Section 12A of the Income-tax Act and enga...