TaxTMI 
TaxTMI 
2026 (5) TMI 1320
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.... appeals arise out of common facts, they were heard together and are disposed of by this consolidated order. 2. Brief facts of the case are as under:- The assessee is a trust engaged in charitable activities and filed application in Form No. 10AB on 29/05/2025 seeking registration u/s. 12AB of the Act as well as approval u/s. 80G of the Act. The Ld. CIT(E) rejected the application for registration u/s. 12AB primarily on the ground that the assessee granted scholarship to an Indian student pursuing education abroad, which according to the Ld. CIT(E) is hit by the provisions of section 11(1)(c) of the Act. It was further observed that the object clause permits application of funds outside India. 2.1. Consequently, while adjudicating ....
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....u/s. 12AB be granted and consequential approval u/s. 80G also be allowed. 3.2. The Ld. DR relied upon the order of the Ld. CIT(E) and submitted that the assessee had applied funds outside India, which is not permissible in view of section 11(1)(c) of the Act. It was submitted that the Ld. CIT(E) has rightly rejected the application. We have perused the submissions advanced by both sides in light of the records placed before this Tribunal. 4. The primary basis for rejection of registration u/s. 12AB is that the assessee granted scholarship to an Indian student for pursuing education abroad, which according to the Ld. CIT(E) violates section 11(1)(c) of the Act. 4.1. We find that the issue is squarely covered by the decision of th....
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....y has reiterated the stand taken before the AO and has also relied on the judgment of the Hon'ble ITAT in the case of the Jamsetji Tata Trust v. Joint Director of Income-tax (Exemption) Range-II, [2014] 44 taxmann.com 447/148 ITD 388 (Mumbai) wherein the hon'ble ITAT has held that the education grant given to the Indian Students in India for education/higher education abroad fulfills the conditions of application of money for such purpose in India. The appellant has also submitted that the Hon'ble ITAT while delivering this judgment has clearly held that the facts in the case of National Association of Software and Services Companies which was relied upon by the AO were distinguishable. The relevant part of the Judgment of the Hon'ble ITAT ....
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....olk arts and Indian music etc. The trust was invited by the Government of Nigeria to give certain dance performance abroad. Accordingly the trust sends a troop and paid a sum of Rs. 1.55 lakh being the passage money to the Travel Corporation of India. The Tribunal held in para 6 as under: "6. The crucial question is only whether the conditions in section 11 are complied with. That section states that the income derived from property held under trust wholly for charitable purposes shall not be included in the total income to the extent to which such income is applied to such purposes in India. The question is whether this section requires the application of money in India or the carrying out of the purposes in India or both. The con....