The Commissioner Of Income Tax (Exemptions v. Kantilal Jaikishandas Choksi Charitable Trust

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 293 of 2020 ========================================================= THE COMMISSIONER OF INCOME TAX (EXEMPTIONS) Versus KANTILAL JAIKISHANDAS CHOKSI CHARITABLE 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 has erred in allowing the claim of the assessee for carry forward of deficit, ignoring the fact that there is no express provision in the Income Tax Act, 1961 allowing such claim and without appreciating the fact that this would have the effect of granting double benefit to the assessee, first as accumulation of income u/s. 11(1)(a) or Corpus donation u/s. 11 (1)(d) in earlier/current year, or exempt income u/s 10(34) and then as application of income u/s 11(1)(a) in subsequent years which is legally not permissible ?” 2. We have heard Mr. Manish Bhatt, the learned Sr. Counsel appearing for the Revenue. Counsel appearing for the Revenue. 3. The question 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 from its properties should be determined on the basis of commercial principles and if commercial principles are made applicable in determining the income, it would be obvious that the assessment of the expenses incurred by the trust for the 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)