| Question And Answer | |
|---|---|
| Subject: | whether gross or not income taxable in the case trust return not filed on due date |
| Category: | Income-Tax |
| Querist: | PARANCHOTHI |
| Answered by: | Law Intern |
| Tags: | Section 12A(1)(ba) |
| Date: | April 24, 2025 |
EDUCATIONAL TRUST IS REGISTERED UNDER SECTION 12A . FOR A.Y 2018-19 RETURN IS NOT FILED ON DUE DATE. WHETHER GROSS INCOME OR NET INCOME TAXABLE? ANY MADRAS HIGH COURT JUDGEMENT IN THIS REGARD PL SIR
As the trust registered under Section 12A has failed to file its return by the due date for A.Y. 2018-19, the exemptions under Sections 11 and 12 will not be available as per Section 12A(1)(ba).
The Net income (gross receipts minus allowable revenue expenses) will be taxable as an AOP. Deductions for expenses are allowed if they are verifiable and related to earning the income.
I am not aware of any Madras HC judgement on section 12A(1)(ba). However, there are a number of jusgements holding that only net income can be assessed such as CIT vs. Tamil Nadu Agricultural and Rural Development Society (2003)(Mad) and CIT vs. Madras Race Club.