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2019 (6) TMI 139 - AT - Income TaxExemption claimed u/s 11 and 12 - taxability of unregistered trust - objects & activities of the trust in AY 2013-14 to 2016-17 remains the same as in the FY 2018-19 when the registration granted u/s 12AA - Charitable activity or not ? - gross receipt taxable or income - HELD THAT:- What can be brought to tax is the net income in the hands of the assessee trust and not the gross receipts. In all these years, we find that while denying the exemption u/s 11 and 12 for want of registration u/s 12AA, AO has brought gross receipts to tax which is against the basic tenets of law where only the real income which is determined after deducting expenses from gross receipts can be brought to tax. We therefore agree with the alternate contention so advanced by the AR and without going into merit of the other contention which is left open, the matter is set-aside to the file of the AO to examine the claim of the expenditure so claimed by the assessee trust against the gross receipts for each of the relevant years and where the AO determines the net receipts as not exceeding the maximum amount not chargeable to tax, allow the necessary relief to the assessee trust. - Appeals filed by assessee trust are allowed for statistical purposes.
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