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TMI Blog2022 (7) TMI 377X X X X Extracts X X X X X X X X Extracts X X X X ..... n the case of India Brand Equity Foundation [ 2012 (7) TMI 799 - ITAT DELHI ], the disallowance of expenditure applied outside India is upheld. - Decided against assessee. - ITA No.7925/Del/2019 - - - Dated:- 24-5-2022 - SHRI KUL BHARAT, JUDICIAL MEMBER Appellant by None Respondent by Shri Om Prakash, Sr.DR ORDER PER KUL BHARAT, JM : This appeal filed by the assessee for the assessment year 2016-17 is directed against the order of Ld. CIT(A)-40, Delhi dated 05.07.2019. 2. The assessee has raised following grounds of appeal:- 1. The Learned Assessing Officer has erred on facts and in law in passing the impugned order which is contrary to law, equity and justice and facts and material on record, arbit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was processed u/s 143(1) of the Income Tax Act, 1961 ( the Act ) and the case was selected for limited scrutiny under CASS to ascertain whether outward foreign remittance is from disclosed sources and appropriate withholding and reporting obligations have been complied with. Accordingly, notices u/s 143(2) 142(1) of the Act were issued to the assessee on 10.07.2017 and 11.05.2018. The assessee is a trust duly registered u/s 12A of the Act. The assessee was also granted registration u/s 80G of the Act vide order dated 16.08.2010. The Assessing Officer ( AO ) observed that as per Form No.15CB submitted by the assessee, there was foreign remittances of Rs.3,10,000/- on 25.03.2016; Rs.8,95,390/- on 08.12.2016 and Rs.18,86,474/- on 16.10.2015 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d.CIT(A) has given a detailed reasoning for not accepting the contention of the assessee by observing as under:- 4. Determination 4.1. Grounds of appeal Nos.1, 2, 3 4 challenge the disallowance of Rs.30,91,864/- as application of income in view of the provisions of section 11(1)(c). 4.1.1. The Assessing Officer held that the provisions of section 11(1)(c) were applicable in the case of the assessee and that in absence of approval of the CBDT as required under section 11(1)(c), the amount of Rs, 30,91,864/- which was remitted to Japan was not allowed as application. The appellant has submitted that the provisions of section 11(1)(c) are not applicable in the case of the appellant. It has been submitted that the assessee s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i. The charitable organization is a trust which has been created before 01.04.1952 or is engaged in promotion of international welfare in which India is interested. ii. The CBDT by a general or special order has granted exemption for carrying out such activities. 4.1.4 In the case of Director of Income-tax (Exemption) Vs. National Association of Software Services Companies [(2012) 345 ITR 362 (Delhi)], the Hon'ble Delhi High Court held that the income of the trust should not only be applied for charitable purposes but should also be applied in India to such purposes. ...The meaning sought to be attached by assessee to the words 'in India' as qualifying only the 'purposes places a strain on the nat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itable purposes should be confined to India or the application of the income of the trust to the execution of such purposes can be outside India. The word 'applied' is a verb used in past tense. In the provision, it is used in the transitive form because it is followed by the words 'to such purposes in India'. It answers three questions which would arise in the mind of the reader: apply what? Applied to what? And where? The answers would then make the meaning obvious. The answer to the first question would be: apply the income of the trust. The answer to the second question will be : applied to charitable purposes. The answer to the third question will be; applied in India. Thus, even grammatically speaking, the group of wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is applied to the promotion of international welfare outside India shall not be denied the exemption, nor would it be necessary for a charitable or religious trust created before the aforesaid date to seek such an order from CBDT in respect of its income which is applied to charitable or religious purposes outside India. Therefore, the words 'in India' appearing in section 12(2)(a) and the words outside India' appearing in section 11(l)(c) qualify the verb 'applied' appearing in these provisions and not the words 'such purposes'. 4.1.6 In the case of the assessee it is a fact that die amount has been applied outside India. In view of the fact that die expenditure was incurred outside India and in view ..... X X X X Extracts X X X X X X X X Extracts X X X X
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