Dividend on Donated Shares to Corpus Fund Not Income from Other Sources

ITO (E) Vs Bhavitha Foundation (ITAT Mumbai)

In the case of ITO (E) Vs Bhavitha Foundation, the Income Tax Appellate Tribunal (ITAT) Mumbai addressed a crucial question: Should dividend received on shares donated to a corpus fund be treated as part of the corpus or as income from other sources? This case has significant implications for charitable trusts and their taxation under the Indian Income Tax Act.

Bhavitha Foundation received a donation of 5,00,000 equity shares of Majesco Ltd. as a corpus donation. The donor specified that the shares, any receipts from them (dividen

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