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2021 (7) TMI 903 - AT - Income TaxExemption u/s 11 - transaction of ‘foreign contribution’ - assessee has claimed expenses incurred in foreign currency outside India - Addition on no approval of the Board for exemption u/s 11(1)(c) - assessee did not register itself with FCRA nor filed return, the Assessing Officer was of the opinion that the assessee has violated the provisions of FCRA in respect of foreign contribution - addition had been made during the assessment since the order of the Board as per the proviso to section ll(l)(c) had not been received - HELD THAT:- Findings of the ld. CIT(A) show that absence of order of the Board questioned by the Assessing Officer has been found subsequently at the appellate stage which prompted the ld. CIT(A) to delete the disallowance made by the Assessing Officer. Since the order is now available, we do not find any reason to interfere with the findings of the ld. CIT(A). This ground is, accordingly, dismissed. Denial of application of income - HELD THAT:- As decided in INDO-FRENCH CENTRE FOR THE PROMOTION OF ADVANCED RESEARCH [2017 (9) TMI 40 - ITAT DELHI] when a transaction is between Government of India and Government of any foreign country or territory, FCRA is not attracted. When undisputedly, the transaction 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 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. we find no illegality or perversity in the findings returned by Id. CIT (A). - Decided against Revenue.
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