Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2017 (9) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (9) TMI 40 - AT - Income TaxExemption u/s 11 - Expenses incurred by the assessee outside India - Addition on no approval of the Board for exemption u/s 11(1)(c) - computation as per provisions of section 11 to 13 - Held that:- As from the order dated 08.02.2016 issued by Central Board of Direct Taxes (CBDT), the permission has been accorded to the assessee u/s 11(1)(c) of the Act and expenses to the tune of ₹ 11,43,35,344/- incurred by the assessee outside India for the purpose of international welfare are ordered to be not included in the total income of the assessee society. This factual position has not been controverted by the DR, hence, we find no illegality or perversity in the findings returned by the ld. CIT (A) on this ground. - Decided against revenue Transaction of 'foreign contribution' - foreign contribution from Government of France within the meaning of section 2(1)(j) of FCRA without filing return qua these contributions in FC-3 to Ministry of Home Affairs - Held that:- when a transaction is between Government of India and Government of any foreign country or territory, FCRA is not attracted. When undisputedly, the transaction of ₹ 9,45,28,000/- is a grant given by French Government to the assessee society which is a joint venture of French Government and Government of India, the transaction of transferring the grants is a transaction between both the countries as specified in the letter (supra). Furthermore, vide letter dated 08.06.1985, available at page 28 of the paper book, addressed to Secretary General, Ministry of External Relations, Government of France by Shri Ramesh Bhandari, the then Foreign Secretary, it is categorically made clear that, “the assessee society established for promotion of scientific research etc. will be exempt from payment of income-tax.” So, in these circumstances, we find no illegality or perversity in the findings returned by ld. CIT (A) in deleting this addition by treating the assessee society as a Government society. - Decided against revenue Addition under the head ‘interest income’ u/s 13(1)(d) - deposits in the French bank violates the provisions of section 11(5) read with section 13(1)(d) - Held that:- When the assessee society is a joint venture of Government of India and Government of France to promote scientific research in both the countries and funds are jointly contributed by both the Governments, the funds received as grant by the assessee from the French Government are deposited in the Credit Industrial Commercial Paris, French bank which are in accordance with the rules and regulations of society, interest thereon is not hit by provisions of section 11(5) read with section 13(1)(d) of the Act in any manner, the same being not an investment. So, we find no illegality or perversity in the findings returned by ld. CIT (A), hence this ground is also determined against the Revenue.
|