The Commissioner Of Income Tax (Exemptions v. Ashara Mubarka Dai Al Husain Trust

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 294 of 2020 ========================================================== THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus ASHARA MUBARKA DAI AL HUSAIN TRUST ========================================================== Appearance: MRS MAUNA M BHATT(174) for the Appellant(s) No. 1 for the Opponent(s) No. 1========================================================== CORAM: HONOURABLE MR. JUSTICE J.B.PARDIWALA andHONOURABLE MR. JUSTICE ILESH J. VORA Date : 25/01/2021 ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. The Revenue has proposed the following substantial questions of law for consideration of this Court : “[A]Whether on the facts and circumstances of the case and in law, the Appellate Tribunal was justified in allowing the benefit of the deficit of Rs.5,40,90,439/- for earlier year against the income of subsequent year without considering the source of expenditure. [B]Whether on the facts and circumstances of the case and in law, the Appellate Tribunal was justified in allowing deficit resulting out of accumulated unspent 15 % funds for which the assessee has already claimed deduction in respective years?” 2. We have heard Mr. Manish Bhatt, the learned Sr. Counsel appearing for the Revenue. Counsel appearing for the Revenue. 3. The questions of law as proposed by the Revenue is no longer res integra. The issue is covered by the decision of this Court in the case of CIT Vs. Shri Plot Shwetamber Murtipujak Jain Mandal [(1995) 211 ITR 293 (Guj.), taking the view that the income derived by a trust fro its properties should be determined on the basis of commercial principles and if commercial principles are made available in determining the income, it would be obvious that the assessment of the expenses incurred by the trust for charitable and religious purposes in the earlier year against the income earned by the trust in the subsequent year will have to be considered as the application of income of the trust for charitable and religious purposes in the subsequent year will have to be considered. 4. In view of the aforesaid, this appeal fails and is hereby dismissed. is hereby dismissed. (J. B. PARDIWALA, J) SUCHIT (ILESH J. VORA,J)