how to treat the loss in trusts registered u/s 12(A) of I.T. Act, 1961. Can the loss be carry forward and set off against the future years surplus/profit. The trust doesn't have any business income. The only income is thro' donations.
how to treat the loss in trusts registered u/s 12(A) of I.T. Act, 1961. Can the loss be carry forward and set off against the future years surplus/profit. The trust doesn't have any business income. The only income is thro' donations.
In case of trusts, the income is the gross receipts of the trust. Now, in terms of a trust, u can say this way or rather ask this way that whether the amount of excess application of the last year can be set off against the deficiency of the subsequsent A.Y. !
In case of trust, it is not carry forward of loss, but it is carry forward of excess expenditure
Hence in the celebrated case of Matriseva Trust [2000] 242 ITR 20 (Mad.), the same is allowed to be set off and carry forward..
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