charitable trust

Clause (b) of sub-section (1) of section 12A of the Act requires audit if the total income of the institution for the relevant year exceeds the maximum amount which is not chargeable to income tax. This means if the total income of the institution in any previous year before giving effect to the provisions of the Act is less than the maximum amount which is not chargeable to income tax, then audit under the Act is not required.
As in the cureent situation gross receipt of the assessee exceed the minimum amount which is not chargeble to tax before giving the effect of privision of the act hence the charitable trust is liable to audit as per income tax act.