Section 12A: Voluntary Corpus Contribution by Unregistered Trust Not Taxable

Marudhar Sewa Samiti Vs ITO (ITAT Ahmedabad) Introduction: The ITAT Ahmedabad in Marudhar Sewa Samiti Vs ITO case, has ruled that voluntary contributions received towards the corpus of an unregistered trust under Section 12A are considered capital receipts, hence not taxable. The case offered new insights into the interpretation of tax liabilities for unregistered trusts. Analysis: The appeal revolved around the core question of whether voluntary contributions received towards the corpus of an unregistered trust were taxable. According to ITAT, these contributions fall under the category of ca...