M/s Sevasadan Orphanage and Training Institute, Bangalore V. DDIT, Bangalore

ITA 971/BANG/2015

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 1520 (ITAT-BANGALORE)
• Duration Of Justice: 4 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2011-2012
• Appeal Filed On: 17-06-2015
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: RUKMANI ATTRI
• Assessee Lawyers: S VENKATESAN
• Keywords: Depreciation; Charitable institution
• Section: 28; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, BANGALORE BENCH B BEFORE SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.971/ BANG/2015 (ASST. YEAR 2011-12 ) M/S SEVASADAN ORPHANAGE AND TRAINING INSTITUTE, #347, SARJAPUR ROAD, KORAMANGALA, BANGALORE-560 034. . APPELLANT VS. THE DY. COMMISSIONER OF INCOME-TAX (EXEMPTION), CIRCLE 17(2), BANGALORE. . RESPONDENT APPELLANT BY : SHRI S VENKATESAN, C.A RESPONDENT BY : SMT. RUKMANI ATTRI, JCIT DATE OF HEARING : 09-11-2015 DATE OF PRONOUNCEMENT : 10-11 -2015 O R D E R PER SMT. ASHA VIJAYARAGHAVAN, JUDICIAL MEMBER THE APPEAL IS FILED BY THE ASSESSEE. THE APPEAL IS DIRECTED AGAINST THE ORDER OF COMMISSIONER OF INCOME-TAX (AP PEALS) II DATED 25/2/2015 FOR THE ASSESSMENT YEAR 2011-12. ITA NO.971/B/15 2 2. THE APPELLANT IS A PUBLIC CHARITABLE INSTITUTION REGISTERED AS A SOCIETY UNDER THE MYSORE SOCIETIES REGISTRATION ACT AND IT CARRIES ON EDUCATIONAL ACTIVITIES FOR THE HOMELESS AND ORPHANE D BOYS AND ACTIVITIES FOR THE RELIEF OF THE POOR. THE RETURN OF INCOME FOR AY 2011-12 WAS FILED ON 12.03.2012 DECLARING A TOTAL INCOME OF RS.NIL. THE ONLY SUBSTANTIVE ISSUE DISPUTED IN THIS APPEAL RELATES TO THE AO NOT PERMITTING THE DEFICIT FOR THE YEAR TO BE CARRI ED FORWARD AND SET OFF AGAINST THE APPELLANTS INCOME OF FUTURE YEARS. 3. THE ASSESSEE HAD SHOWN EXCESS EXPENDITURE OF RS. 26,23,938/- IN ITS INCOME & EXPENDITURE ACCOUNT. THE AO DID NO T ALLOW CARRY FORWARD OF THIS FOR APPLICATION TO FUTURE YEARS WHE RE SURPLUS INCOME WOULD BE AVAILABLE, HOLDING THAT EXEMPTION IN TERMS OF SECTION 11(1)(A) IS ALLOWABLE ONLY FOR THE APPLICATION OF T HE CURRENT YEARS INCOME. HE ALSO MENTIONED THAT THE ASSESSMENT OF T RUSTS IS DONE AS PER THE SELF CONTAINED CODE INCORPORATED IN SECTION S 11 TO 13 OF THE IT ACT 1961 WHICH DO NOT EXPRESSLY ALLOW FOR CARRY FOR WARD OF LOSSES ARISING DUE TO EXCESS APPLICATION IN A PARTICULAR Y EAR. 4. THE APPELLANT IS AGGRIEVED BY THE ABOVE TREATMEN T AND EMPHASIZED BEFORE THE CIT(A) ON APPEAL THAT AS PER SECTION 11(1)(A) ITA NO.971/B/15 3 THERE IS NO RESTRICTION THAT THE ENTIRE INCOME HAS TO BE APPLIED IN THE SAME YEAR ONLY, WHICH MEANS THAT EXCESS APPLICATION CAN BE SET-OFF IN THE SUBSEQUENT YEAR OUT OF RECEIPT OF INCOME DURING THE NEXT YEAR. AS A COROLLARY, THEREFORE, IT WAS CLAIMED THAT THE EXC ESS APPLICATION OF ANY YEAR CAN BE SET OFF IN THE SUBSEQUENT YEAR. RE LIANCE WAS PLACED ON THE FOLLOWING JUDICIAL DECISIONS: CIT VS. SHRI GUJARATI SAMAJ 204 TAXMAN 151 (MP/17 TAXMANN.COM 164 (M) DIT VS. RAGHUVANSHI CHARITABLE TRUST 197 TAXMAN 170 (DELHI) CIT VS. MAHARANA OF MEWAR CHARITABLE FOUNDATION (19 87) 164 ITR 439 (RAJ) CIT VS. INSTITUTE OF BANKING PERSONNEL SELECTION 26 4 ITR 110 (BOM.) GOVINDU NAICKER ESTATE VS. ADIT (2001) 248 ITR 368 (MAD) DAWATH INSTITUTE OF DB COMMUNITY VS. ITO (2008) 22 SOT 359 (MUM. ITAT) CIT VS. SHRI PLOT SWETAMBAR MURTI PUJAK JAIN MANDAL (1995) 211 ITR 293 (GUJ.) CIT VS. SACRED HEART CHURCH 278 ITR 180 (GUJ.) CIT VS. MATRISEVA TRUST (2000) 242 ITR 20 (MAD) GEM & JEWELLERY EXPORT PROMOTION COUNCIL VS. ITO (1 999) 68 ITD 95 (MUM) CIT VS. ST. GEORGE FORANE CHURCH (1988) 170 ITR 62 ; 36 TAXMAN 42 (KER.) TRUSTEES OF BALKAN J BARI (1979) 10 CTR (TRIB) 22 (BOMBAY) CHOTANAGPUR DIOCESAN TRUST VS. ITO 19 ITD 175 (PATN A) 5. CIT(A) CONCLUDED THE DECISION OF THE HONBLE ITA T BOMBAY IN CASE OF ITO VS. TRUSTEES OF SRI SATYA SAI TRUST (33 ITD 320) HAVE ITA NO.971/B/15 4 ALSO AFFIRMED THE AOS POSITION HOLDING THAT THE DE FICIT ARISING ON ACCOUNT OF APPLICATION OF FUNS/SUMS WHICH ARE NOT I N THE NATURE OF INCOME IS NOT CAPABLE OF BEING CARRIED FORWARD. FU RTHER, THE CIT(A) OBSERVED THAT HONBLE ITAT DELHI IN PUSHPAVATI SING HANIA RESEARCH INSTITUTE FOR LIVER, RENAL AND DIGESTIVE DISEASES V S. DDIT (E) (29 SOT 316) HAVE HELD THAT ANY EXCESS EXPENDITURE INCU RRED BY A CHARITABLE INSTITUTION IN EARLIER YEARS CANNOT BE A LLOWED TO BE CARRIED FORWARD AND SET OFF AGAINST THE INCOME OF SUBSEQUEN T YEARS. 6. THE CIT(A) HELD THAT THERE WAS NO REASON TO INTE RFERE WITH THE AOS CONCLUSION IN THIS MATTER. THE GROUND RAISED BY THE APPELLANT WAS DISMISSED BY CIT(A). 7. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT THE VIEW TAKEN BY THE LEARNED CIT (APPEALS) THAT CARRY FORW ARD OF EXCESS EXPENDITURE INCURRED IS NOT PERMISSIBLE IN THE ABSE NCE OF A SPECIFIC PROVISION FOR THE SAME IS NOT CORRECT AND IN THIS R EGARD REFERRED TO THE OBSERVATIONS OF THE HON'BLE HIGH COURT OF BOMBAY IN THE CASE OF CIT V INSTITUTE OF BANKING (264 ITR 111) AND THE DECISI ON OF THE CO- ORDINATE BENCHES OF THIS TRIBUNAL IN THE CASES OF B ALDWIN METHODIST EDUCATION SOCIETY IN ITA NO.523/BANG/2014 DT.31.3.2 015 AND ST. ITA NO.971/B/15 5 FRANCIS SALES EDUCATIONAL AND CHARITABLE TRUST IN I TA NO.365/BANG/2014 DT.10.7.2015 IN SUPPORT OF THE PRO POSITION PUT FORTH BY HIM. 8. PER CONTRA, THE LEARNED DEPARTMENTAL REPRESENTAT IVE SUPPORTED THE ORDERS OF THE AUTHORITIES BELOW. HE SUBMITTED THAT THE HON'BLE HIGH COURT OF DELHI IN THE CASE OF INDIAN NATIONAL THEATER TRUST (SUPRA) HAS HELD THAT ACCUMULATION OF INCOME SHOULD BE ONLY OUT OF THE CURRENT YEARS INCOME. THE LEARNED AUTHORISED REPRESENTATIVE SUBMITTED THAT IN VIEW OF THE ABOVE, THE IMPUGNED O RDERS PASSED BY THE LEARNED CIT (APPEALS) IS JUSTIFIED AND NO INTE RFERENCE IS CALLED FOR THEREON. 9. THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CA SE OF JYOTHI SEVA SOCIETY OF BANGALORE VS. ASST. DIRECTOR OF INC OME-TAX (EXEMPTION) IN ITA NO.312/BANG/2015 HAS HELD AS FOL LOWS: WE HAVE HEARD THE RIVAL CONTENTIONS OF BOTH PARTIES AND PERUSED AND CAREFULLY CONSIDERED THE MATERIAL O N RECORD; INCLUDING JUDICIAL PRONOUNCEMENTS, CITED AN D PLACED RELIANCE UPON. WE FIND THAT THE CASE OF INSTITUTE OF BANKING ITA NO.971/B/15 6 (SUPRA), THE HON'BLE HIGH COURT OF BOMBAY HAS HELD AS UNDER :- NOW COMING TO QUESTION NO. 3, THE POINT WHICH ARISE S FOR CONSIDERATION IS : WHETHER EXCESS OF EXPENDITURE IN THE EARLIER YEARS CAN BE ADJUSTED AGAINST THE INCOME OF THE SUBSEQUENT YEAR AND WHETHER SUCH ADJUSTMENT SHOULD BE TREATED AS APPLICATION OF INCOME IN SUBSEQUENT YEAR FOR CHARITABLE PURPOSES? IT WAS ARGUED ON BEHALF OF THE DEPARTMENT THAT EXPENDITURE INCURRED IN THE EARLIER YEARS CANNOT BE MET OUT OF THE INCOME OF THE SUBSEQUENT Y EAR AND THAT UTILIZATION OF SUCH INCOME FOR MEETING THE EXP ENDITURE OF EARLIER YEARS WOULD NOT AMOUNT TO APPLICATION OF INCOME FOR CHARITABLE OR RELIGIOUS PURPOSES. IN THE PRESEN T CASE, THE AO DID NOT ALLOW CARRY FORWARD OF THE EXCESS OF EXP ENDITURE TO BE SET OFF AGAINST THE SURPLUS OF THE SUBSEQUENT YEARS ON THE GROUND THAT IN THE CASE OF A CHARITABLE TRUST, THEIR INCOME WAS ASSESSABLE UNDER SELF-CONTAINED CODE MEN TIONED IN S. 11 TO S. 13 OF THE IT ACT AND THAT THE INCOME OF THE CHARITABLE TRUST WAS NOT ASSESSABLE UNDER THE HEAD 'PROFITS AND GAINS OF BUSINESS' UNDER S. 28 IN WHICH THE PRO VISION FOR CARRY FORWARD OF LOSSES WAS RELEVANT. THAT, IN THE CASE OF A CHARITABLE TRUST, THERE WAS NO PROVISION FOR CARR Y FORWARD OF THE EXCESS OF EXPENDITURE OF EARLIER YEARS TO BE ADJUSTED AGAINST INCOME OF SUBSEQUENT YEARS. WE DO NOT FIND ANY MERIT IN THIS ARGUMENT OF THE DEPARTMENT. INCOME DE RIVED FROM THE TRUST PROPERTY HAS ALSO GOT TO BE COMPUTED ON COMMERCIAL PRINCIPLES AND IF COMMERCIAL PRINCIPLES ARE ITA NO.971/B/15 7 APPLIED THEN ADJUSTMENT OF EXPENSES INCURRED BY THE TRUST FOR CHARITABLE AND RELIGIOUS PURPOSES IN THE EARLIER YE ARS AGAINST THE INCOME EARNED BY THE TRUST IN THE SUBSE QUENT YEAR WILL HAVE TO BE REGARDED AS APPLICATION OF INC OME OF THE TRUST FOR CHARITABLE AND RELIGIOUS PURPOSES IN THE SUBSEQUENT YEAR IN WHICH ADJUSTMENT HAS BEEN MADE H AVING REGARD TO THE BENEVOLENT PROVISIONS CONTAINED IN S. 11 OF THE ACT AND THAT SUCH ADJUSTMENT WILL HAVE TO BE EXCLUD ED FROM THE INCOME OF THE TRUST UNDER S. 11(1)(A) OF THE AC T. OUR VIEW IS ALSO SUPPORTED BY THE JUDGMENT OF THE GUJARAT HI GH COURT IN THE CASE OF CIT VS. SHRI PLOT SWETAMBER MURTI PU JAK JAIN MANDAL (1994) 119 CTR (GUJ) 144 : (1995) 211 ITR 29 3 (GUJ). ACCORDINGLY, WE ANSWER QUESTION NO. 3 IN THE AFFIRMATIVE I.E., IN FAVOUR OF THE ASSESSEE AND AGA INST THE DEPARTMENT. THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE CASE OF BALDWIN METHODIST EDUCATIONAL SOCIETY (SUPRA), HAS HELD AS UNDER :- WE ALSO FIND THAT A BENCH OF THIS TRIBUNAL IN T HE CASE OF ACADEMY OF LIBERAL EDUCATION IN ITA NO.687/BANG/201 4 DATED 20/2/2015, TO WHICH ONE OF US I.E. THE ACCOUN TANT MEMBER IS THE SIGNATORY, HAS CONSIDERED THIS ISSUE AND IN PARA.8 OF ITS ORDER, HELD AS UNDER: 8. WE ARE OF THE VIEW THAT PENDENCY OF A N APPEAL BEFORE THE HON'BLE HIGH COURT OF KARNATAKA CANNOT B E THE BASIS NOT TO FOLLOW THE DECISION ON THE ISSUE ALREA DY ITA NO.971/B/15 8 RENDERED IN IDENTICAL CASES. SECTION 11(1)(A) DOES NOT CONTAIN ANY WORDS OF LIMITATION TO THE EFFECT THAT THE INCOME SHOULD HAVE BEEN APPLIED FOR CHARITABLE OR RELIGIOU S PURPOSE ONLY IN THE YEAR IN WHICH THE INCOME HAS AR ISEN. THE APPLICATION FOR CHARITABLE PURPOSES AS CONTEMPL ATED IN SECTION 11(1)(A) TAKES PLACE IN THE YEAR IN WHICH T HE INCOME IS ADJUSTED TO MEET THE EXPENSES INCURRED FOR CHARI TABLE OR RELIGIOUS PURPOSES. HENCE, EVEN IF THE EXPENSES FOR SUCH PURPOSES HAVE BEEN INCURRED IN THE EARLIER YEARS AN D THE SAID EXPENSES ARE ADJUSTED AGAINST THE INCOME OF A SUBSEQUENT YEAR, THE INCOME OF SUCH SUBSEQUENT YEAR CAN BE SAID TO BE APPLIED FOR CHARITABLE OR RELIGIOUS PURP OSES IN THE YEAR IN WHICH SUCH ADJUSTMENT TAKES PLACE. IN OTHER WORDS, THE SET-OFF OF EXCESS OF EXPENDITURE INCURRED OVER THE INCOME OF EARLIER YEARS AGAINST THE INCOME OF A LATER YEAR WILL AMOUNT TO APPLICATION OF INCOME OF SUCH LATER YEAR. THE ABOVE IS THE POSITION OF LAW AS HELD IN THE CASE OF CIT VS. MAHARANA OF MEWAR CHARITABLE FOUNDATION 164 ITR 439 (RAJ) CIT VS. SHRI PLOT SWETAMBER MURTI PUJAK JAIN MANDAL 211 ITR 293 (GUJ.). IN CIT VS. INSTITUTE OF BANKING PERSONNEL SELECTION 264 ITR 110 (BOM), IT WAS HELD THAT IN CASE OF CHARITABLE TRUST WHOSE INCOME IS EXEMPT UND ER S. 11, EXCESS OF EXPENDITURE IN THE EARLIER YEARS CAN BE A DJUSTED AGAINST INCOME OF SUBSEQUENT YEARS AND SUCH ADJUSTM ENT WOULD BE APPLICATION OF INCOME FOR SUBSEQUENT YEARS AND THAT DEPRECIATION IS ALLOWABLE ON THE ASSETS THE CO ST OF WHICH HAS BEEN FULLY ALLOWED AS APPLICATION OF INCO ME UNDER S. 11 IN PAST YEARS. IN GOVINDU NAICKER ESTATE VS. ADIT 248 ITA NO.971/B/15 9 ITR 368 (MAD), THE HONBLE MADRAS HIGH COURT HELD T HAT THE INCOME OF THE TRUST HAS TO BE ARRIVED AT HAVING DUE REGARD TO THE COMMERCIAL PRINCIPLES, THAT S. 11 IS A BENEVOLENT PROVISION, AND THAT THE EXPENDITURE INCU RRED ON RELIGIOUS OR CHARITABLE PURPOSES IN EARLIER YEAR OR YEARS CAN BE ADJUSTED AGAINST THE INCOME OF THE SUBSEQUENT YE AR. THE PRINCIPLE THAT THE LOSS INCURRED UNDER ONE HEAD CAN ONLY BE SET OFF AGAINST THE INCOME FROM THE SAME HEAD IS NO T OF ANY RELEVANCE, IF THE EXPENDITURE INCURRED WAS FOR RELI GIOUS OR CHARITABLE PURPOSES, AND THE EXPENDITURE ADJUSTED A GAINST THE INCOME OF THE TRUST IN A SUBSEQUENT YEAR, WOULD NOT AMOUNT TO AN INCIDENCE OF LOSS OF AN EARLIER YEAR B EING SET OFF AGAINST THE PROFIT OF A SUBSEQUENT YEAR. THE OB JECT OF THE RELIGIOUS AND CHARITABLE TRUST CAN ONLY BE ACHIEVED BY INCURRING EXPENDITURE AND IN ORDER TO INCUR THAT EXPENDITURE, THE TRUST SHOULD HAVE AN INCOME. SO LO NG AS THE EXPENDITURE INCURRED IS ON RELIGIOUS OR CHARITABLE PURPOSES, IT IS THE EXPENDITURE PROPERLY INCURRED BY THE TRUS T, AND THE INCOME FROM OUT OF WHICH THAT EXPENDITURE IS INCURR ED, WOULD NOT BE LIABLE TO TAX. THE EXPENDITURE, IF INC URRED IN AN EARLIER YEAR IS ADJUSTED AGAINST THE INCOME OF A LA TER YEAR, IT HAS TO BE HELD THAT THE TRUST HAD INCURRED EXPENDIT URE ON RELIGIOUS AND CHARITABLE PURPOSES FROM THE INCOME O F THE SUBSEQUENT YEAR, EVEN THOUGH THE ACTUAL EXPENDITURE WAS IN THE EARLIER YEARS, IF IN THE BOOKS OF ACCOUNT OF TH E TRUST SUCH EARLIER EXPENDITURE HAD BEEN SET OFF AGAINST THE IN COME OF THE SUBSEQUENT YEAR. THE EXPENDITURE THAT CAN BE SO ADJUSTED CAN ONLY BE EXPENDITURE ON RELIGIOUS AND ITA NO.971/B/15 10 CHARITABLE PURPOSES AND NO OTHER. THE HIGH COURT RE LIED ON THE DECISION IN THE CASE OF CIT VS. SOCIETY OF SIST ERS OF ST. ANNE 146 ITR 28 (KAR). WE FIND THAT THE ORDER OF THE CIT(A) IS IN CONSONAN CE WITH THE JUDICIAL PRECEDENTS REPRODUCED ABOVE. THEREFOR E, WE SEE NO REASON TO INTERFERE WITH THE ORDER OF THE CI T(A). THE REVENUES APPEAL IS, ACCORDINGLY, DISMISSED. IT IS CLEAR FROM THE RELEVANT PORTIONS OF THE AFORESAID DECISIONS OF THE HON'BLE HIGH COURT OF BOMBAY (SUPR A) AND THE CO-ORDINATE BENCH OF THE ITAT, BANGALORE (SUPRA ) EXTRACTED ABOVE THAT THE INCOME OF CHARITABLE TRUST S IS REQUIRED TO BE COMPUTED ON COMMERCIAL PRINCIPLES. THE CONCEPT OF APPLICATION OF THE INCOME FOR THE YEAR I N WHICH THE INCOME HAS ARISEN IS NOT FOUND IN SECTION 11(1) (A) OF THE ACT. NO LIMITATION TO THE ABOVE EFFECT IS FOUND IN THE LANGUAGE OF THE SECTION. IT MERELY REQUIRES APPLIC ATION OF THE INCOME THAT HAS ARISEN FROM THE PROPERTY HELD U NDER TRUST. IN THIS VIEW OF THE MATTER, THE PRINCIPLES RELATING TO SET OFF OF LOSSES, ETC. IS NOT OF ANY RELEVANCE AND THEREFORE ANY EXCESS APPLICATION OF INCOME DURING THE YEAR C AN BE REGARDED AS APPLICATION OF THE INCOME OF FUTURE YEA RS AND CAN BE ADJUSTED. THEREFORE, IN OUR VIEW, THE CLAIM OF THE ASSESSEE FOR CARRY FORWARD OF EXCESS APPLICATION I S IN ACCORDANCE WITH THE JUDICIAL PRECEDENTS ON THE ISSU E AND THE SAME IS ALLOWABLE. ITA NO.971/B/15 11 IN THE CASE OF INDIAN NATIONAL THEATER (SUPRA) RELIED ON BY THE LEARNED DEPARTMENTAL REPRESENTATIVE. THE HO N'BLE HIGH COURT OF DELHI HAS HELD THAT TO SATISFY THE REQUIREMENTS OF SECTION 11(2)(B) OF THE ACT, THE IN VESTMENT MUST NECESSARILY COME OUT OF CURRENT YEARS INCOME AND THE INVESTMENT MADE IN THE PAST OBVIOUSLY CANNOT SATISF Y THE REQUIREMENTS FOR THE CURRENT YEAR. THE ABOVE DECIS ION OF THE HON'BLE DELHI HIGH COURT HAS CONSIDERED THE PRO VISIONS OF SECTION 11(2) OF THE ACT AND HAS TAKEN THE VIEW THAT THE ACCUMULATION UNDER SECTION 11(2) OF THE ACT CAN BE ONLY OUT OF CURRENT INCOME. WE, HOWEVER, FIND THAT THE CO- ORDINATE BENCHES OF THE BANGALORE TRIBUNAL HAVE CONSISTENTLY FOLLOWED THE VIEW OF THE HON'BLE BOMBA Y HIGH COURT (SUPRA) IN WHICH THE APPLICATION HAS BEEN REG ARDED AS ADJUSTABLE AGAINST THE INCOME OF THE FUTURE YEAR S. WE ARE, THEREFORE, INCLINED TO FOLLOW THE VIEW TAKEN B Y THE CO- ORDINATE BENCHES OF THIS TRIBUNAL, INTER ALIA, IN T HE CASE OF BALDWIN METHODIST EDUCATIONAL SOCIETY (SUPRA), BASE D ON THE VIEW/DECISIONS OF THE HON'BLE BOMBAY HIGH COURT IN THE CASE OF INSTITUTE OF BANKING (SUPRA) AND THE HON'BL E GUJARAT HIGH COURT IN THE CASE OF CIT V SHRI PLOT SWETAMBER MURTI PUJAK JAIN MANDAL REPORTED IN 211 ITR 293. IN THIS VIEW OF THE MATTER, THE ASSESSING OFFICER IS DIRECTED TO AL LOW CARRY FORWARD OF THE EXCESS APPLICATION OF RS.7,44,328 FO R THE YEAR TO BE ADJUSTED FROM INCOME FROM PROPERTY HELD UNDER TRUST OF THE SUBSEQUENT YEARS. IT IS ORDERED ACCORDINGLY . CONSEQUENTLY, GROUNDS 2 AND 3 OF ASSESSEE'S APPEAL ARE ALLOWED. ITA NO.971/B/15 12 10. RESPECTFULLY FOLLOWING THE DECISION OF CO-ORDIN ATE BENCH WE ALLOW THE APPEAL OF THE ASSESSEE. 11. IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWE D. ORDER PRONOUNCED IN THE OPEN COURT ON 10TH NOV, 2015 . SD/- SD/- (INTURI RAMA RAO) (ASHA VIJAY ARAGHAVAN) ACCOUNTANT MEMBER JUDICIAL MEMBER BANGALORE DATED : 10/11/2015 VMS COPY TO :1. THE ASSESSEE 2. THE REVENUE 3.THE CIT CONCERNED. 4.THE CIT(A) CONCERNED. 5.DR 6.GF BY ORDER ASST. REG ISTRAR, ITAT, BANGALORE.