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2012 (7) TMI 799 - AT - Income TaxApplication of income outside India - Charitable activity - Disallowance of amounts spent outside India for participating in Hannover Fair in Germany - the mischief u/s 11(1)(a) & 11(1)(b) - Held that:- The words "to the extent to the which such income is applied to such purposes in India" appearing in section 11(1)(a) only require that the charitable purposes should be confined to India on the application of the income of the trust to the execution of such purposes can be outside India, appears to us to be also opposed to the natural and grammatical meaning that can be ascribed to the words - it is mandatory that the amount should be spent and applied in India. As regards plea taken by the assessee, it has participated in Hannover Fair at the instance of the Ministry of Commerce, cannot override the Income-tax Act and there is no bar in applying for charitable purpose outside India, if there is an approval from CBDT which is not there. So, in the absence of such approval, disallowance in this regard could validly be made. Disallowing the deprecation - Held that:- The income of the assessee being exempt, the assessee is only claiming that depreciation should be reduced from the income for determining the percentage of funds which have to be applied for the purposes of the trust. There is no double deduction claimed by the assessee as canvassed by the Revenue - in favour of the assessee
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