Covid Relief Donations Taxable Under Section 56(2)(x) Due to Lack of Clear Charitable Purpose and Commingled Personal Accounts

The ITAT upheld the taxation of Covid relief donations under Section 56(2)(x), finding the assessee's claims unpersuasive. Despite claiming the funds were for charitable purposes, the donations were mixed with personal accounts of the assessee, her father, and sister. The tribunal determined that the funds were not exclusively used for Covid relief, with substantial amounts remaining unutilized and potentially invested. The assessee's attempts to challenge the tax liability were rejected, as she could not substantiate the exclusive charitable use of the donations. The funds were deemed taxable as income from other sources, and the appeals were consequently dismissed. .....

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