Scrutiny assessment of ‘receipts of trust’ does include appropriation of the same

Marymatha Province of Vincentian Congregation Vs Additional/Joint/Deputy/ACIT/ITO (Kerala High Court) Kerala High Court held that taking up the issue of appropriation of receipts of trust is justifiable since issue raised in scrutiny assessment is ‘receipts of trust’ and the same includes appropriation as well. Accordingly, no illegality committed when carrying out the assessment in respect of the appropriation of the amounts. Facts- The petitioners are ‘Trusts’ exempted under Sec.12A of the Income Tax Act. The challenge raised in these writ petitions pertains to the assessment orders...