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2022 (9) TMI 1186 - AT - Income TaxExemption u/s 11 - assessee has incurred expenses in foreign currency outside India under the head “Expenses on Specialized fairs and Buyers Seller Meet Abroad” - HELD THAT:- It is evident that the grants are given specifically for participation in a particular events held in abroad, the grant approval includes a condition that a separate account for the projects have to be maintained. The assessee has utilize the funds as per the terms and conditions of the grant and the grants are not to be utilized in any other purpose than for which it is issued and also that the execution of the project is not be entrusted to any other organization. The up spent grant along with interest @10% from the date of release of the fund has to be reimbursed by the Government. Therefore it is evident that the assessee is not free to use the funds voluntarily as per its own whims and fancies and the same has to be spent as per the terms and conditions of the grant. As in the case of Society for integrated Development in urban and rural areas (SIDUR) [2002 (12) TMI 205 - ITAT HYDERABAD-B] the issue regarding treatment of tide up grants was considered by the Tribunal wherein it was held that voluntarily contributions covered by Section 12 are those contributions freely available to the assessee without any stipulation, which the assessee can utilize towards his objectives according to its own discretion and judgment. The tide up grants for a specific purpose would only mean that the assessee which was voluntarily organization, had agree to act as a trustee of a special fund granted by the donor with the result that it need not be pooled or integrated with the assessee is normal income or corpus. We do not find any legal infirmity or error in the order of the CIT(A) in deleting the addition made by the A.O and we find no merits in the grounds of Appeal of the Revenue.
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