TaxTMI 
TaxTMI 
2026 (9) TMI 2042
X X X X Extracts X X X X
X X X X Extracts X X X X
....ngly. ITA No. 5582/Del/2026 is taken as lead case. 3. Fact in brief as culled out from the orders of the authorities below are that the Appellant Oxonian India Foundation ("OIF"),is a non-profit company incorporated on 18.09.2015u/s 8 of the Companies Act, 2013 with the object of promoting education, research, training, skill development and higher education. One of the objects in particular is providing scholarship tenable at Oxford University or Somerville College, sporting Rhodes trust scholars and providing aids &financial assistance to the students for higher education in India or abroad. Thus, the objects of the appellant from inception clearly contemplated providing educational assistance to Indian students pursuing higher education outside India. Since, inception, the appellant has sponsored various Indian students for higher education under its scholarship program associated with Somerville College, Oxford University. 4. The appellant was initially granted registration u/s 12A of the Act on 20.05.2016 w.e.f. from A.Y. 2016-17 and approval u/s 80G of the Act from A.Y. 2016-17 onwards. Thereafter, registration u/s 12A(1)(ac)(i) and approval u/s 80G of the Act was grant....
X X X X Extracts X X X X
X X X X Extracts X X X X
....fter that shepursued Master of Philosophy (Mphil) in Law in 2017 which is a 12 months research master's, often taken after Bachelor of Civil Law. 4) The Ld. CIT(Exemption) has erred both on facts and in law in rejecting the application u/s 12A(1)(ac)(ii) by ignoring the fact that at the stage of granting registration, it is only required to examine the objects of the trust. 5) The Ld. CIT(Exemption) has erred both on facts and in law in rejecting the application u/s 12A( 1 )(ac)(ii) by ignoring the fact that the objects of the trust are same as at the time of previous approvals granted. 6) The Ld. CIT(Exemption) has erred both on facts and in law in rejecting the application u/s 12A(1)(ac)(ii) without considering the fact that assessment u/s 143(3) for AY 2018-19 was completed without taking any adverse view against the assessee. 7) The Ld. CIT(Exemption) erred in law and on facts in not appreciating that the scholarship amounts were directly disbursed to the respective bank accounts of the beneficiaries in India, thereby constituting valid application of income for charitable purposes in accordance with the provisions of Section 11 of the In....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ften taken after Bachelor of Civil Law. 5) The Ld. CIT(Exemption) has erred both on facts and in law in rejecting the approval u/s 80G(5)(ii) by ignoring the fact that at the stage of granting registration, it is only required to examine the objects of the trust. 6) The Ld. CIT(Exemption) has erred both on facts and in law in rejecting the approval u/s 80G(5)(ii) by ignoring the fact that the objects of the trust are same as at the time of previous approvals granted. 7) The Ld. CIT(Exemption) has erred both on facts and in law in rejecting the approval u/s 80G(5)(ii) without considering the fact that assessment u/s 143(3) for AY 2018-19 was completed without taking any adverse view against the assessee. 8) The Ld. CIT(Exemption) erred in law and on facts in not appreciating that the scholarship amounts were directly disbursed to the respective bank accounts of the beneficiaries in India, thereby constituting valid application of income for charitable purposes in accordance with the provisions of Section 11 of the Income-tax Act, 1961. 9) The Ld. CIT(Exemption) erred in law and on facts in not appreciating the fact that most of the schola....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nly be done within the parameters of section 12AB(4) after the registration is granted and not otherwise. Reliance has been placed on the Judgment of the Hon'ble Allahabad High Court in Fifth Generation Education Society vs. CIT (1990)185 ITR 634 (All.). e. Fifthly, section 11(1)(c) of the Act can be attracted only when the trust applied income to charitable purpose outside India that the income applied by giving scholarship to the Indian students in India does not imply that the income has been applied to the charitable purpose outside India. Hence, there is no violation of section 11(1)(c) of the Act. It is further submitted that the income is being spent on the Indian beneficiary by way of transfer to their Indian bank account in rupees and as such section 11(1)(c) is not attracted. f. Sixthly, that the situs of the beneficiaries' expenditure does not determine the situs of the appellant's application of income because the appellant does not itself carry on any educational activity in United Kingdomas it has not established or operates any institution abroad and has not made any payment to a foreign university. That the charitable activity consists solely o....
X X X X Extracts X X X X
X X X X Extracts X X X X
....mpugned order is perfectly legal and permission has been rightly rejected. 8. We have considered the rival submissions and examined the material available on record. On the basis of factual matrix and the arguments advanced before us, the following points of consideration emerges as under: i. Whether spending of income of the trust on the scholarship to the Indian citizens for education abroad and remitting of the amount in India in Indian currency is beyond the objects of the charitable activity of the trust or not? ii. Whether the CIT(E) need to examine the application of the income of trust u/s 11(1)(c) of the Act at the time of considering the registration u/s 12AB and approval u/s 80G of the Act? 9. We now proceed to decide the above points as under: Point No. 1 It has been argued that primary object of the trust includes education, and spending on the scholarship to the Indian citizens for studying abroad.The said activity carried in respect of above aspect and has been accepted regularly by the Income Tax Department and nothing adverse has been observed during the assessment u/s 143(3) of the Act for A.Y. 2016-17 and the applicant trust was duly regis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nsultancy & Professional Fees (INR) 2022-23 23,25,360 18,86,490 2023-24 60,19,190 25,72,160 2024-25 1,25,20,000 27,24,390 It was noticed that the expenses in the form of consultancy & professional fees were made to the following 2 entities: * M/s Canta Consultants LLP- wherein Mr. ShashankVira (director of M/s Oxonian India Foundation) is the designated partner. * M/s Perfect Accounting & Shared Services Private Limited The assessee vide letter/notice dated 13.12.2025 was asked the following- "3. Please provide the details of Consultancy & Professional fees claimed from FY 2022-23 to FY 2024-25 along with relevant bills. Also provide the services availed from these consultants. 4. Please provide justification of claiming substantial amount of expenses on Consultancy & Professional fees. 5. On perusal of your bank statement, it is observed that payments are being made to M/s Canta Consultants LLP wherein Mr. ShashankVira (specified person) is a director/designated director. Kindly explain how the payment is not for the benefit of a person specified in section 13(1)(c) of the Income Tax Act, 196....
X X X X Extracts X X X X
X X X X Extracts X X X X
....timately being applied for studies abroad. In that regard, the ld. AR has relied upon the case of Delhi Tribunal in Oxford Cambridge Society India Vs. CIT(E)(supra) wherein the Hon'ble jurisdictional Tribunal in para 3 onwards has decided as under: 3.0 We have considered the rival submissions and have gone through the records before us. The primary issue to be decided is whether disbursing scholarships in India, to Indian students for studies at a foreign university constitutes application of income "outside India" under Section 11(1)(c), justifying denial of 12A/80G registration. Admittedly the situs of disbursement of the scholarship is within India, as the assessee is seen to be paying the scholarships in India directly to scholars or their guardians in India, in Indian currency. No amount is remitted to the UK or to any foreign institution. We need also to consider the language of section 11(1)(c) of the Act: "Income from property held for charitable or religious purposes. 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- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....genuine hardship.", we, thus, are of the opinion that, the delay of 38 days, that too explained, to be on account of delay in receipt of Order from Charity Commissioner, the assessee should not be penalized for that, even otherwise the authority needs to adopt a liberal and justice oriented approach to while condoning the delay. 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 income will happen for educational purposes in India. The financial assistance so provided will be utilized by students f....
X X X X Extracts X X X X
X X X X Extracts X X X X
....th respect to both the appeals, which thus stand allowed." 12. Further, reliance has been placed by the ld. AR on the following cases: * Jhaverbhai Patel Research Centre Vs. CIT(E) [2026 (1) TMI 1646] * J. N. Tata Endowment for Higher Education of Indians [2024 (9) TMI 144] * R. Mangaldas Charitable Trust Vs. CIT(E) [2025 (10) TMI 1433] * Jamsetji Tata Trust Vs. Jt. DIT(E) [2014 (5) TMI 890 * Mandke Foundation Vs. CIT(E) [2026 (7) TMI 785]. 13. Admittedly, there is no dispute that the funds are being utilized on the scholarships to the Indian students and amount is also being remitted in India through banks in Indian currency. There is nothing contrary in the impugned order which may show that the said activity is not covered within the objects of the trust as one of the primary object of the trust is 'education'. Therefore, respectfully relying upon the case of judicial tribunal, we are of the considered opinion that the ld. CIT(E) has unjustifiably denied the registration on the ground that scholarship amount is being utilized for the studies of Indian students abroad and further that the selection criteria of the scholarship is ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....vities, and not to the application or alleged misapplication of income, which is a matter to be examined by the Assessing Officer during assessment proceedings." 15. The ld. DR, on the other hand, argued that the utilization of the funds by the trust is in violation of section 13(1)(c) and as such the trust was not eligible for the exemption u/s 11(1)(c). The ld. DR has relied the case of Hon'ble Delhi High Court i.e. Director of Income Tax (Exemption) Vs. Charanjiv Charitable Trust (2014) 43 taxmann.com 300 (Del.). 16. We have noticed that the said judgment of the Hon'ble Delhi High Court is having distinct facts as it primarily dealt with deduction by way of application of income etc. which otherwise is the area pertaining and relevant to the assessment proceedings and cannot be made a ground of rejection of registration u/s 12AB of the Act. We have also noticed that the Hon'ble jurisdictional Tribunal in the case of Om Welfare Society Vs. CIT(E) in ITA Nos. 8278 & 8279/Del/2025 has also discussed the similar issue and decided the issue in favour of the assessee directing registration of u/s 12AB of the Act. The relevant finding in that regard contained in para 10 & 11 is e....