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TMI Blog2015 (9) TMI 654X X X X Extracts X X X X X X X X Extracts X X X X ..... n objective of the assessee association. Per contra, from the Article of Association available it is vivid that the main objects as contained in clause (3) of the Memorandum of Association, objectives cannot be fulfilled without sending foreign delegation and, therefore, foreign travelling expenses incurred by the assessee cannot be held as application of income outside taxable territories of the assessee. Therefore, we are inclined to agree with the conclusion of the CIT(A) and we are unable to see any infirmity, perversity or any other valid reason to interfere with the same - Decided in favour of assessee. X X X X Extracts X X X X X X X X Extracts X X X X ..... e association of various members and its main objective is to promote trade and industry and to protect its interest. The assessee also sends various delegations to foreign countries for the promotion of trade and industry and in this process the assessee has incurred the expenditure of ₹ 90,54,426/- for the foreign travelling of its delegates. The AO has disallowed the foreign traveling expenses on the ground that the same is not utilized for the purposes and towards main objective of the assessee association. The assessee carried the matter before the CIT(A) and the assessee succeeds. The CIT(A) granted relief for the assessee by observing that it is apparent that the foreign travelling expenses for the assessee are for the purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of CBDT's Notification u/s 11(1)(c) of the Act in this regard. Ld. DR finally prayed that the impugned order may be set aside by restoring that of the AO. 5. Ld. counsel of the assessee supporting the impugned order submitted that in the case of Gems & Jewellery Promotion Council vs ITO reported as 68 ITD 95 ITAT Mumbai on the similar issue of foregoing travelling expenses, the Tribunal has allowed the relief to the assessee on the ground that the foreign travelling expenses are for the purposes of promotion of trade and industry in India. Ld. Counsel of the assessee further pointed out that similar issue was also raised before ITAT 'I' Bench Delhi in the case of ICAI vs DIT(E) Delhi in ITA No.1853/Del/2010 wherein foreign travelling exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It is submitted that the case of the assessee is also fully covered by the case of Gems and Jewellery Promotion Council vs. ITO 68 ITD 95, Bombay ITAT in which there was a similar issue of foreign traveling expenses and the Hon'ble Tribunal has allowed relief to the assessee on the ground that the foreign traveling expenses are for the purposes in India. It is also submitted that the similar issue also came up in the case of ICAI vs. DIT (Exemption) Delhi in ITA No. 1853/Delh/2010 (I Bench, ITAT, Delhi) in which there were foreign traveling expenses and the tribunal has allowed the same on the ground that the expenses are for the purposes in India. 2.2 I have considered the order of the AO and the submissions of the assessee and I f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee association for the purposes of promotion of trade and industry in India which is the main object of the assessee association. In view of above, we respectfully hold that the benefit of the ratio of the said decision of Hon'ble Supreme Court in the case of H. E.H. Nizam's Religious Endowment Trust vs. Commissioner of Income Tax (supra) is not available for the revenue as the facts and circumstances of the present case are distinguishable from that case. 8. Undisputedly and admittedly, the main objective of the assessee association is to promote trade and industry in India that in the present era of economic globalization, sending delegation to foreign countries cannot be held as outside the ambit of main objective of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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