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2021 (4) TMI 57 - AT - Income TaxExemption u/s 11 - Grant of registration u/s 12AA - charitable society for the purposes of claiming exemption of its income u/s 11 & 12 - n denied registration for the reason that its incidental and ancillary objects included carrying out the activities outside the India - HELD THAT:- The provisions of section 11 (1)(c) of the Act, which the Ld.CIT(E) has relied upon for holding that only activities carried out in India will qualify as charitable for grant of registration, is only for the purpose of determining the income which qualifies for exemption u/s 11 of the Act. The said section comes into operation only once registration is granted u/s 12A of the Act and therefore cannot be relevant for the purposes of granting registration u/s 12A of the Act. The scheme of the Act is that all entities carrying out charitable activities, as defined in section 2 (15) of the Act, qualify to be registered as charitable entities subject to satisfaction of the concerned officer vis a vis their objects and activities, but the exemption is provided/restricted only to the extent of income which is applied for charitable purpose in India. The issue we find, is squarely covered in favour of the assessee by the decisions relied upon by the Ld. Counsel for the assessee before us. In the case of MK Nambyar SAARC Law Charitable Trust [2004 (5) TMI 51 - DELHI HIGH COURT], we find, the application for grant of registration was rejected on the ground that the applicant itself had admitted that the scholarship could be paid to members even outside India. The Hon' ble High Court held that the application of income outside India is not a relevant criteria for rejecting the application for grant of registration u/s 12 AA of the Act and the officer has to only restrict himself to the satisfaction about the objects and genuineness of the activities of the trust while granting registration with no restriction on the activities being carried out inside or outside India. The aforesaid decision of the Hon'ble Delhi High Court has been followed by the Coordinate Benches of the Tribunal in the case of National Informatics Centre Services Inc. [2017 (6) TMI 872 - ITAT DELHI]. The order passed by the Ld.CIT(E) denying registration u/s 12 A of the Act is set aside and the Ld. CIT(E) is directed to grant registration as applied for by the assessee. Appeal of assessee allowed.
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