9911796707
TMI Blog1989 (4) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act, 1961. 2. The assessee is a public charitable trust registered under section 12A of the Income-tax Act, 1961 by order of the Commissioner of Income-tax dated 4-8-1984. The main object of the trust is " to advance, propagate, encourage and promote all Indian classical and folk arts (of Bharata Natya Kathakali) and Indian music and to establish and maintain an institution for i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, not eligible for exemption under section 11. 3. He therefore, directed the ITO to re-compute the income after treating this amount as not eligible for exemption. 4. In the appeal before us it was contended on behalf of the assessee that section 11 only required that the funds should be applied in India and since it was not in dispute that the amount was paid in India to the Travel Corpor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly an enabling provision and does not prohibit any tour being undertaken outside India. In any event the facts of this case show that the tour was not organised or conducted by the assessee but the Government at the invitation of the foreign government. All that the assessee had to do was to participate in the project of the Government by sending its artists for propagation of the arts. 6. The cr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he principle that Governments do not forego their revenue in favour of charges paid outside their countries and hence the relevant consideration is whether the situs of the application of the money and not the place in which the objects of the trust may become effective. It may be pertinent to refer to section 10(16) which exempts scholarships granted to meet the cost of education where also the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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