TaxTMI 
TaxTMI 
2019 (1) TMI 142
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.... fact that the assessee has not obtained approval u/s 11(1)(c) of the Act from the CBDT to incur the expenditure outside India for a charitable purpose which tends to promote international welfare in which India is interested to the extent to which such income is applied to such purpose outside India." 3. Brief facts of the case is that assessee is an association of person who filed its return of income on 31/10/2006 declaring nil income. It was found by the AO that assessee has incurred and expenditure of INR 12467479/- Out of India but no direction or approval of the board was found available in the assessment record or in the audit report under section 12 A of the income tax act. Therefore the learned assessing officer disallowed the ab....
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....s further stated that the amount has been paid in Indian rupees and the details was also submitted showing cheque numbers and amounts of the above payment. It was further stated that the amount of pocket allowance is also paid in Indian rupees in India. It was further stated that payment of daily allowance and accommodation of Rs. 668300/- was paid in foreign currency. The learned AO on perusal of the submission of the assessee held that assessee has to spend 85% of the income derived from property held under trust during the previous year for charitable purposes in India. And further if any such income is applied outside India shall not be included in the total income of the previous year. For the application of the income outside India ,....
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..... However, following facts are relevant to the issue that Assessee is an arm of the Ministry of Railways. No meeting of championship, events or activities were organised or held by the assessee abroad outside India. The income was spent only in India for expenditure on players of different games who were participating in prestigious competition internationally. Thus, it is for promoting the interest of the country internationally and promoting sportsperson, both nationally and internationally. Further, as assumed by the AO, the amount is not spent on any international meet. Rather, it is just an expenditure head. The AO has not brought on record anything to reflect that the amount was spent outside or even in foreign currency. The activit....
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....ut looking at the provisions of section 11 (1) (c) of the income tax act. 7. The learned authorised representative reiterated the submissions made before the lower authorities and submitted that no expenditure has been incurred by the assessee outside India but paid in Indian rupees to the players in India. He extensively read his submissions before the learned assessing officer as well as before the learned Commissioner of income tax appeals. 8. We have carefully considered the rival contention and perused the orders of the lower authorities. On careful consideration of the paragraph number 9 of the order of the learned Commissioner of income tax (Appeals) It was found that assessee has not incurred these expenditure outside India but in....