Gross Receipts of Non-Exempt Trust Cannot Be Fully Taxed: ITAT Mumbai

SCMS Maritime Training Institute Vs Ward 25(1)(1) (ITAT Mumbai) Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has provided relief to SCMS Maritime Training Institute, a trust, by ruling that its gross receipts cannot be fully subjected to tax even if it loses its exemption under Section 11 of the Income Tax Act, 1961. The Tribunal, in its order dated May 27, 2025, remitted the case back to the Assessing Officer for re-computation, emphasizing that only the net surplus, after allowing legitimate expenditure and depreciation, can be taxed. The appeal was filed by the assessee against an or...