AI Drafter 
TaxTMI 
TaxTMI 
2017 (9) TMI 40
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....lhi, for the Assessment Year 2010-11 on the grounds inter alia that :- "1. "On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the fact that the income of the assessee is to be computed as per provisions of section 11 to 13 of the Act and therefore, the expenses amounting to Rs. 11,43,35,344/ - incurred by the assessee outside India were not allowable as application of income as the assessee was not notified u/s 11(1)(c) of the Act by the CBDT. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in directing the AO to re-compute the income on commercial principle in respect of expenditure incurred outside India, is not lawful. 3.....
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.... subsequently it was registered under section 12AA of the Act vide order dated 13.05.2004. Assessee society's income is exempt u/s 11(1)(c) as per approval granted by the Board up to AY 2009-10 and its fresh application for renewal is pending before the Board. As per permissions accorded by the Reserve Bank of India (RBI), the assessee society has opened a bank account with Credit Industrial Commercial Paris in France with objective of receiving grant from the French Government and expenses of the society are made from this account and balance amounts are transferred to India which are utilized by the society. 3. Assessing Officer made an addition of Rs. 11,43,35,344/- under the head 'foreign expenditure' for lack of approval of the Boar....
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....overnment of France. Instead, the transaction of 'foreign contribution' was transacted directly between Government of France and the assessee society. Moreover, in the case of the assessee, compulsory auditing by C&AG is not required. 3. On the facts and in the circumstances of the case and in law, Ld. CIT(A) has erred in adjudicating that there is no violation of Section 13(1)(d) of the Act, 1961 in respect of interest of Rs. 8,849/- earned on investment made with Credit Industrial at Commercial Paris, France, by the assessee in ignoring that investment was not made in conformity with Section 11 (5) of the Income Tax Act, 1961. 4. On the facts and in the circumstances of the case and in law, Ld. CIT(A) has erred i....
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.... the total income of the assessee society. This factual position has not been controverted by the ld. DR, hence, we find no illegality or perversity in the findings returned by the ld. CIT (A) on this ground. Consequently, Grounds No.1 & 2 of original grounds and Grounds No.1 & 4 of additional grounds are determined against the Revenue. GROUND NO.3 OF ORIGINAL GROUNDS AND GROUNDS NO.2 & 5 OF ADDITIONAL GROUNDS 9. AO made disallowance of Rs. 9,45,28,000/- on the ground that since the assessee society has received foreign contribution from Government of France within the meaning of section 2(1)(j) of FCRA without filing return qua these contributions in FC-3 to Ministry of Home Affairs as per FCRA. 10. Undisputedly, the assessee soci....
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...., Lodhi Road, New Delhi - 110003. Subject : Permission under Foreign (Regulation) Act, 2010 Sir, I am directed to refer to your letter dated 18 Sept 2013 on the subject mentioned above and to state that Foreign Contribution (Regulation) Act, 2010 does not attract in respect of the following transactions : a) Transaction between the Govt. of India and the Govt. of any foreign country or territory - Clause 51 of FCRA 2010. b) Bodies constituted or established by or under a Central Act or a State Act requiring compulsory auditing by C & AG Notification No. S. O. 1492 (E) dated 1 July, 2011. In view of above, it is required to examine the subject proposal. If the foreign contributio....