Corpus specific voluntary contributions are outside the scope of taxation

ACIT Vs Financial Inclusion Trust (ITAT Delhi) Introduction: The Income Tax Appellate Tribunal (ITAT) Delhi recently rendered a significant decision in the case of ACIT vs Financial Inclusion Trust. The dispute revolves around the treatment of Rs. 44.25 crores received by the trust and the applicability of taxation on corpus-specific voluntary contributions. Detailed Analysis: The crux of the matter lies in the trust’s non-registration under section 12A of the Income-tax Act, rendering it supposedly ineligible for exemption under section 11(1)(d). The Assessing Officer treated the receiv...