2015 (9) TMI 654

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....noring the fact that as per proviso to section 11(1)(C) of the Income Tax Act, 1961, the expenses incurred by the assessee outside India on account of foreign traveling were not allowable as application of income as the assessee was not notified by the CBDT in this regard. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring that Hon'ble jurisdictional High Court in the case of DIT(E) vs. National Association of Software and Services Companies (NASCOM) has referred to the judgment of Bench of three judges of Hon'ble Apex court in H. E.H. Nizam's Religious Endowment Trust vs. Commissioner of Income Tax (1956) 59 ITR 582 wherein ratio has been laid down 'the state did not lik....

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....d both the sides and carefully perused the relevant material placed on record. Ld. DR supporting the action of the AO submitted that the Ld. CIT(A) has erred in ignoring the fact that as per proviso to section 11(1)(C) of the Income Tax Act, 1961, the expenses incurred by the assessee outside India on account of foreign traveling were not allowable as application of income as the assessee was not notified by the CBDT in this regard. Ld. DR vehemently contended that the CIT(A) has erred in ignoring that Hon'ble jurisdictional High Court in the case of DIT(E) vs. National Association of Software and Services Companies (NASCOM) has referred to the judgment of Bench of three judges of Hon'ble Apex court in H. E.H. Nizam's Religious ....

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....for the purposes of promotion of trade and industry in India as the main objective of the assessee is to promote trade and industry for which sending a delegation of foreign countries is an essential part of main objective. Ld. Counsel finally submitted that appeal of the revenue is devoid of merits and the same may kindly be dismissed. 6. On careful consideration of above submissions of both the sides, at the very outset, we note that the CIT(A) has granted relief for the assessee with following observations and conclusion:- "2.1 The assessee is in appeal against the order of the AO and it is submitted that the assessee is a charitable organization and it is registered u/s 12A and the income of the assessee is also exempt u/s 11. It ....

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....all the facts and circumstances of the case I am of the view that there is no proper justification for disallowing the foreign traveling expenses and accordingly the addition made by the AO is deleted." 7. On vigilant perusal of the judgment of Hon'ble Supreme Court in the case of H. E.H. Nizam's Religious Endowment Trust vs. Commissioner of Income Tax (supra), we are in agreement with the contention of the ld. Counsel of the assessee that the facts of the present case are distinguishable from that case. On careful reading of said judgment of Hon'ble Supreme Court, it is amply clear that in that case, the assessee Nizam's Trust was denied exemption in regard to the application of income from property as per second part of clause (i) ....