TaxTMI 
TaxTMI 
2022 (7) TMI 377
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....ary based on conjectures and surmises, passed without application to defend. 2. The appellant denies his liability to tax as determined and computed by the learned assessing officer and the manner in which it has been so determined or computed. 3. The Learned Assessing Officer has erred on facts and in law in calculating the Total income and disallowing the education expenses amounting to Rs 30,91,864. 4. The Learned Assessing Officer has erred in law and on facts in initiating the penalty proceedings us 271(1)(C)." 3. At the time of hearing, no one was present on behalf of the assessee. It is seen from the records that since 22.12.2020, no one has been attending the hearing on behalf of the assessee. The notic....
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....5. Thus, the assessee made foreign remittance of Rs.30,91,864/-as payment against education tour package. The AO called upon the assessee to explain regarding allowability of the expenditure. The assessee filed its response. The reply of the assessee was not found acceptable and the assessing authority therefore, held that expenses of Rs.30,91,864/- were applied outside India and was in contravention u/s 11(1)(c) of the Act. 6. Aggrieved against this, the assessee preferred appeal before Ld.CIT(A), who sustained the addition, thereby the finding of AO was affirmed. 7. Aggrieved against the order of Ld.CIT(A), the assessee is in appeal before this Tribunal. 8. Ld. Sr. DR strongly supported the orders of the authorities below and sub....
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....assessee society neither has property in its own name nor derived any income from the property during the year under consideration. It has further been submitted that a programme was organised and that the amount of expenditure incurred by the society was not for a charitable purpose which tends to promote international welfare in which India is interested. 4.1.2. I have considered the assessment order and the submissions of the appellant. Section 11(1)(c) reads as under: "11. (1) Subject to the -provisions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income - (c) income [derived] from property held under trust- (....
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....e 'purposes' places a strain on the natural or grammatical interpretation of the group of words. If what assessee contends is correct, then section 11(1)(c) may become redundant and otiose. If as assessee says, the income of the trust can be applied even outside India so long as the charitable purposes are in India, then there is no need for a trust which tends to promote international welfare in which India is interested and which was created after 2-4-2952 to apply to the CBDT for a general or special order directing that the income to the extent to which it is applied to the promotion of international welfare outside India shall not be denied the exemption, nor would it be necessary for a charitable or religious trust created before ....
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....us, even grammatically speaking, the group of words 'to such purposes in India' qualifies the preceding verb applied'. It is a case of a verb being qualified by two prepositions which follow, viz., 'to' and 'in'. So, grammatically also, it would be proper to understand requirement of the provision in this way, that is, that the income of the trust should be applied not only to .charitable purposes, but also applied in India to such purposes. The submissions of the assesses that the words 'in India' qualify only the words 'such purposes' so that only the purposes are geographically confined to India does not appear to be the natural and grammatical way of construing the provision. That would break or d....