TaxTMI 
TaxTMI 
2026 (1) TMI 1646
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.... The grounds of appeal raised by the assessee are as under: 1. "On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Exemptions) has erred in rejecting the application seeking amendment to the Trust Deed, by considering payment for scholarship to Indian Resident and paid in India, for higher education of higher medical studies outside India, as a violation of provisions of section 11(1) (c) of the Income Tax Act, 1961." 2. At the outset, the ld. Authorized Representative (AR) on behalf of the assessee, submitted that the assessee's application in form 10AB dated 04.02.2025 for registration under section 12AB has been considered by the Ld. CIT(E). Requirement of sub rule (2) of Rul....
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...., application in Form 10AB for should be filed within 30 days i.e. 28.12.2024. However, the Trust has filed application in Form 10AB for regularization of provisional registration order u/s 12A on 04.02.2025 1 after a delay of 38 days which is not valid as per the above provisions. In view of this, a show cause notice was issued to the applicant vide DIN & Notice No. ITBA/EXM/F/EXM43/2025-26/1080344625(1) dated 04.09.2025 and explanations were called for regarding the above-mentioned violations. Additionally, information like proof of expenses on the objects of the trust alongwith copy of bank statement and financial statement were called for vide the same notice dated 04.09.2025. However, no response was received in this regard. A....
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....ncurred outside India thus provisions of section 11(1)(c) of the Act, are attracted. Therefore, in view of the same, approval order from the Board received by the trust for expenditure incurred outside India, as mandated by proviso to section 11(1)(c) of the Act was called for from the applicant vide DIN & Notice No. ITBA/EXM/F/EXM43/2025-26/1080944436(1) dated 19.09.2025. 4.3 In response, the applicant filed its submission vide letter dated 22.09.2025, wherein it enclosed a bank statement evidencing the payment of 2,00,000/- made to Ms. Annushree Ajitkumar. The applicant has contended that the said amount was paid to her in Indian Rupees (INR), and thereafter, Ms. Annushree Ajitkumar remitted the equivalent amount in US Dollars (U....
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....ovisional registration in Form 10AB filed by the assessee is not allowable on the ground of violation of provisions of section 11. In conclusion, this application for grant of registration stands rejected." 3. Referring to the aforesaid observations of ld. CIT(E), ld. AR submitted that the observations of ld. CIT(E) are not lawful, being misconceived in terms of the provisions of Act, as well as the facts of the case. To substantiate the aforesaid contentions the ld. AR took us to page 37 of the assessee's Paper Book (PB) containing therein the reply of assessee to ld. CIT(E), that the order passed by Charity Commissioner dated 29.11.2024 was received by the assessee's society only on 17.01.2025, thus the application for grant of registr....
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....(1)(c) of the Act and based on such observations, the application of assessee was rejected. It was the prayer that there was no violation on the part of assessee under provisions of section 11(1)(c) of the Act, the clauses which needs amendment are also acted upon by the Executive Committee of assessee society for necessary amendments, further argued that the scholarship to Indian resident paid in India for higher education outside India, should not be treated as payment made outside India. Reliance was placed on Mangaldas Charitable Trust, Mumbai Vs. CIT(E), Mumbai, in ITA No.17/MUM/2025 dated 31.10.2025 and ITA 7006/Mum/2013 in the case of Jamsetji Tata Trust Vs. JCIT(E), Mumbai vide order dated 26.03.2014. It is submitted that, the decis....
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....ay. We this direct to condone the delay in filing of for 10AB in present case. 7. On other issues, which forms the belief of Ld. CIT(E) to reject the application of assessee, that the payment in India for study outside India does equate to payments / expenses incurred outside India, does not inspire any confidence, particularly when the scholarship is granted to an Indian citizen in Indian rupees. This issue was decided ITAT Mumbai in the case of R. Mangaldas Charitable Trust, Mumbai Vs. CIT(E) (supra), observing that, "if the scholarship is granted by a charitable institution in accordance with their objects, whereby such financial assistance is provided in India in Indian rupees and that too, to Indian student, such application of inco....