Akshat Education and Charitable Trust Vs. ITO(E)

Parties Involved

Facts Summary

The assessee, Akshat Education and Charitable Trust, is a Public Charitable Trust registered under section 12AA of the Income Tax Act, 1961. The trust operates a school and filed its income return in Form ITR-7 on 31.03.2021, declaring nil income after claiming exemption under section 11. However, the return and audit report were filed beyond the due date of 15.02.2021. The Commissioner of Income Tax (Processing Centre), Bengaluru, denied the exemption and taxed the gross receipts of Rs. 1,99,48,893/- as income. The assessee appealed against this order, arguing that the CPC erred in taxing gross receipts without allowing legitimate revenue expenses.…

Legal Issues

• 1. Whether the CPC was justified in taxing the gross receipts without allowing deduction of expenditure incurred for carrying out educational activities.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

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