Taxation of trust income

Dinesh (F.C.A) (37 Points)

07 February 2016  
Our trust has one of the objective to build Hindu temples and maintenance of these. The CIT rejected our application under section 12AA of income tax. During the previous year donation of Rs.4 lac received out of which 3.75 lacs spent on parsad /langar, now what shall be treated income of trust RS.4 LACS OR RS.25 THOUSAND after deducting expenses? Thank you!