Director Of Income Tax(Exemption) vs M/S.Indo Fresh Chamber Of Commerce And ... on 19 July, 2016
Income derived from the trust
property has also got to be computed on commercial principles
4
ITA No. 3373/Mum/2017 (A.Y. 2010-11)
Dy. CIT (Exemption) vs. Indo Italian Chambers of Commerce & Industry
and if commercial principles are applied then adjustment of
expenses incurred by the Trust for charitable and religious
purposes in the earlier years against the income earned by the
Trust in the subsequent year will have to be regarded as
application of income of the Trust for charitable and religious
purposes in the subsequent year in which adjustment has been
made having regard to the benevolent provisions contained in
section 11 of the Act and that such adjustment will have to be
excluded from the income of the Trust under section ll(l)(a) of the
Act, Our view is also supported by the judgment of the Gujarat
High Court in the case of CIT v. Shri Plot Swetamber Murti Pujak
Jain Mandal (1995) 211 ITR 293 (Cuj). Accordingly, we answer
question No. 3 in the affirmative i.e., in favour of the assesses and
against the department."