Suppose that you want to count the $i$-element subsets of $[i]=\{1,2,\ldots,i\}$. Of course there’s only one of them, but we can also count them by the following roundabout procedure. We first expand the set from which we’re drawing the $i$-element subset to $[i+j]=\{1,\ldots,i+j\}$. Now for each $\ell\in[i]$ let $A_\ell$ be the family of $i$-element subsets of $[i+j]$ that do not contain $\ell$; $\bigcup_{\ell=1}^iA_\ell$ is the family of $i$-elements subsets of $[i+j]$ that are not subsets of $[i]$. By the inclusion-exclusion principle we have
$$\begin{align*}
\left|\bigcup_{\ell=1}^iA_\ell\right|&=\sum_{\varnothing\ne I\subseteq[i]}(-1)^{|I|+1}\left|\bigcap_{\ell\in I}A_\ell\right|\\
&=\sum_{k=1}^i\binom{i}k(-1)^{k+1}\binom{i+j-k}i\;,
\end{align*}$$
since each non-empty $I\subseteq[i]$ has cardinality in $[i]$, for each $k\in[i]$ there are $\binom{i}k$ subsets of $[i]$ of cardinality $k$, and if $|I|=k$,
$$\left|\bigcap_{\ell\in I}A_\ell\right|=\binom{i+j-k}i\;.$$
There are $\binom{i+j}i$ $i$-element subsets of $[i+j]$ altogether, so after we throw out the ones not contained in $[i]$, we have left
$$\begin{align*}
\binom{i+j}i&-\sum_{k=1}^i\binom{i}k(-1)^{k+1}\binom{i+j-k}i\\
&=\binom{i+j}i+\sum_{k=1}^i\binom{i}k(-1)^k\binom{i+j-k}i\\
&=\sum_{k\ge 0}\binom{i}k(-1)^k\binom{i+j-k}i\;,
\end{align*}$$
and we already know that this is $1$.
Note that there is no need to specify an upper limit on the summation: $\binom{i}k=0$ when $k>i$, and $\binom{i+j-k}i=0$ when $k>j$, so all terms with $k>i\land j$ are $0$ anyway.