Corpus Fund Withdrawal Not Taxable When Used for Charitable Objects: ITAT Chennai

DCIT (Exemptions) Vs ICICI Foundation for Inclusive Growth (ITAT Chennai) ITAT Chennai Upholds Exemption of Corpus Withdrawals and Deletes Ad-hoc Disallowance of Administrative Expenses The Chennai Bench of the ITAT dismissed the Revenue’s appeal and upheld the order of the CIT(A) deleting (i) the addition of ₹19.34 crore made by treating withdrawal from corpus fund as income, and (ii) the ad-hoc disallowance of ₹5.30 crore towards administrative expenses for AY 2012-13. The assessee, a charitable trust registered u/s 12AA and approved u/s 80G, had received corpus donations which were ac...