SC Dismisses IT Dept’s Plea in Subros Educational Case

CIT (Exemption) Vs Subros Educational Society (Supreme Court of India)

Supreme Court dismissed the Income Tax Department’s miscellaneous application in the case of CIT (Exemption) vs. Subros Educational Society. The case originally stemmed from a civil appeal linked to a batch of similar matters decided on December 13, 2017. However, the department raised an additional legal question in this appeal—whether a charitable trust or institution could set off excess expenditure from previous years against income in subsequent years under Section 11 of the Income Tax Act, 1961.

The department’s counsel, Mr. K. Radhakrishnan, argued that this issue had not been addressed in the earlier judgment. The Supreme Court acknowledged his contention but, after hearing the arguments, found no merit in the department’s position. Consequently, the court dismissed the miscellaneous application, reaffirming that the earlier decision remained unaffected.

FULL TEXT OF THE SUPREME COURT JUDGMENT/ORDER

In this application filed by the Income Tax Department it is stated that Civil Appeal No. 5171 of 2016 arises out of Special Leave Petition (C)… CC No. 8982/2016 was tagged with other appeals and the batch matters were decided by this Court on 13.12.2017. However, the following question was also raised in the instant appeal which was not the subject matter of those appeals:

“(a)  Whether any excess expenditure incurred by the trust/charitable institution in earlier assessment year could be allowed to be set off against income of subsequent years by invoking  Section 11 of the Income Tax Act, 1961?”

To this extent, Mr. K. Radhakrishnan, learned senior counsel appearing  on  behalf  of  the  applicant/appellant  is  correct.

Therefore, we have heard him on the aforesaid question of law as well but did not find any merit therein.

The miscellaneous application is dismissed.