2016 (3) TMI 960

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....eeking registration under section 12AA of the I.T. Act. Since the assessee could not furnish the required information to various queries raised by the CIT(E) and also could not produce the books of account for verification, the application for registration was rejected by the CIT(E) vide orders dated 31.07.2012. On appeal filed by the assessee, the order of the DIT(E) was set aside by the Tribunal in ITA.No.1527/Hyd/2012 dated 22.02.2013 and directed the CIT(E) to reconsider the application after giving the assessee adequate opportunity of hearing. Consequent thereto, CIT(E) reconsidered the assessee's submissions and called for the various details which were furnished by the representative of the assessee. The CIT(E) perused the trust deed....

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....will be no participation fee for students and further that participation fee will be determined and decided from time to time after taking into account the cost involved in hosting the events. It was also observed that all the revenues accruing from the summits by way of participation fee and sponsorship will be deposited into the bank account in Indian Bank under the name "India Foundation" and that all the expenses incurred in India for organizing the summits including hotel accommodation, event venue rentals etc., will be paid by the foundation. From the second MOU i.e., CIT(E) observed that the expenditure incurred by the associate i.e., the foreign partner, in relation to the event hosted by the foundation, will be taken into account b....

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....n reduced from the claim of expenditure for the year ending 31.03.2011. Thus, according to him, assessee has been carrying on educational activities which are charitable in nature and the assessee is thus eligible for Registration under section 12AA of the I.T. Act. He placed reliance upon the following decisions in support of this contention. 1. George Institute & Global Health vs. DIT(E), Hyderabad (2014) 49 taxmann.com 248 (Hyderabad - Trib.) 2. International Bhaktivedanta Institute Trust vs. DIT(E), Hyderabad (2014) 42 taxmann.com 330 (Hyderabad - Trib.) 3.1. In support of his contention that even if the activities of a trust are extended outside India, as long as the property is held wholly and exclusively under trust for charitab....

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....s of educational material and software both in India and abroad. We find that the activities of the assessee are not restricted to India, nor is the application of income earned by the assessee restricted to application of the same within India. The reliance of the assessee on the decision of the Coordinate Bench of Tribunal at Hyderabad in the case of International Bhaktivedanta Institute Trust vs. DIT(E) (cited supra), is, in our opinion, misplaced, as, in the said case, the Tribunal has observed that the trust deed itself provides for a clause that "the area of operation was throughout India and further that even if activities expands to places outside India, those outside activities would not be funded through the Indian funds". The Tri....