Assessee, a charitable trust declared nil income. CPC issued an intimation under section 143(1) wherein it had added a certain sum and raised a demand taking entire receipts as income and taxed same. On appeal the Tribunal held that since gross receipts could not be taxed in hands of assessee-trust, expenditure relatable to earning of such income was to be allowed as deduction. (AY. 2018-19)
Annadaneshwara Charitable Trust. v. ITO (2023) 203 ITD 641 (Bang) (Trib.)
S. 11 : Property held for charitable purposes-No registration-Only net income can be taxed and not gross receipts.[S.12A , 12AA, 143(1)]