Funds Held in Fiduciary Capacity by Trust cannot be Treated as Income: ITAT Delhi

DCIT Vs Sewa-THDC (ITAT Delhi) Introduction: In a pivotal ruling, the Income Tax Appellate Tribunal (ITAT) in Delhi adjudicated on a matter involving the Department of Income Tax and Sewa-THDC, concerning the nature of funds received by a charitable trust under the Swachh Bharat Abhiyan initiative. The case, marked by the Revenue’s appeal and the assessee’s cross-objection, hinged on whether funds received in a fiduciary capacity by a charitable trust constitute taxable income. Background of the Case: The crux of the dispute lay in the addition of Rs. 1,50,00,000 and Rs. 3,31,57,33...