TaxTMI 
TaxTMI 
2024 (9) TMI 55
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....he case and in law, the Ld. CIT(A) erred in directing the AO to allow the benefit of exemption u/s 11 of the Income-tax Act without appreciating the fact that the application of fund utilized for grants/scholarships used for overseas education are governed u/s 11(1)(c) of the Act and hence cannot be treated as application for charitable purpose in India?" 2. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the AO to allow the benefit of exemption u/s 11 of the Income-tax Act on the basis of the order of the Hon'ble ITAT in the case of Jamestji Tata Trust Case without appreciating the fact that the Department has not accepted the said decision on merits and has filed an appeal u/....
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....ant material on record. The assessee trust claimed loans granted to Indian students as scholarship for their overseas education as application of for the purpose of exemption u/s 11 of the Act. But according to the Assessing Officer income should have been applied for charitable purpose on education within Indian territories and not outside India. According to him, mere fact that persons to whom payments have been made for charitable purpose is Indian and payment has been made in Indian territory is not sufficient but the activity related to charitable purpose for which payment is made, should also happen within Indian territory. Before the Ld. CIT(A), the assessee relied on the decision of the Coordinate Bench of the Tribunal in the case o....
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.... released the grant which took place in india. The decision relied upon by the revenue is not applicable in the facts of the present case as the application of income took place in India and for the purpose of education of Indian students/persons. Therefore, for taking education by beneficiary from abroad would not amount to application of income of the assessee outside India. In the case of Bharata Kalanji (supra) the Chennai Bench of this Tribunal while deciding a question arising from the payment of Rs. 1.55 lakh made to a travel corporation of Indian for sending a troop on tour. The AO treated the expenditure as application of income of the trust for charitable purpose. However CIT revised the assessment and was of the opinion that this....