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DDIT (E) , Trust Circle-IV, New Delhi Versus The Associated Chambers of Commerce and Industry of India

2015 (9) TMI 654 - ITAT DELHI

Charitable purpose - Expenses incurred outside India on account of foreign traveling - whether were not allowable as application of income as the assessee was not notified by the CBDT in this regard? - CIT(A) granted relief for the assessee - Held that:- Undisputedly and admittedly, the main objective of the assessee association is to promote trade and industry in India that in the present era of economic globalization, sending delegation to foreign countries cannot be held as outside the ambit .....

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ble to see any infirmity, perversity or any other valid reason to interfere with the same - Decided in favour of assessee. - I.T.A. No.6525/Del/2013 - Dated:- 31-8-2015 - SHRI N.K. SAINI AND SHRI CHANDRA MOHAN GARG, JJ. For The Appellant : Shri Atiq Ahmad, Sr.DR For The Respondent : Shri Ved Jain, CA ORDER PER C.M. GARG, J.M. This appeal by the revenue has been preferred against the order of CIT(A)-XXI, New Delhi dated 11.9.2013 in Appeal No. 84/02012-13 for AY 2010-11. 2. The grounds raised by .....

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ring that Hon'ble jurisdictional High Court in the case of DIT(E) vs. National Association of Software and Services Companies (NASCOM) has referred to the judgment of Bench of three judges of Hon'ble Apex court in H. E.H. Nizam's Religious Endowment Trust vs. Commissioner of Income Tax (1956) 59 ITR 582 wherein ratio has been laid down 'the state did not like to forgo the revenue in favour of charity outside the country', has held income applied outside India cannot be consid .....

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industry and in this process the assessee has incurred the expenditure of ₹ 90,54,426/- for the foreign travelling of its delegates. The AO has disallowed the foreign traveling expenses on the ground that the same is not utilized for the purposes and towards main objective of the assessee association. The assessee carried the matter before the CIT(A) and the assessee succeeds. The CIT(A) granted relief for the assessee by observing that it is apparent that the foreign travelling expenses f .....

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that the Ld. CIT(A) has erred in ignoring the fact that as per proviso to section 11(1)(C) of the Income Tax Act, 1961, the expenses incurred by the assessee outside India on account of foreign traveling were not allowable as application of income as the assessee was not notified by the CBDT in this regard. Ld. DR vehemently contended that the CIT(A) has erred in ignoring that Hon'ble jurisdictional High Court in the case of DIT(E) vs. National Association of Software and Services Companies .....

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a for charitable purposes in absence of CBDT s Notification u/s 11(1)(c) of the Act in this regard. Ld. DR finally prayed that the impugned order may be set aside by restoring that of the AO. 5. Ld. counsel of the assessee supporting the impugned order submitted that in the case of Gems & Jewellery Promotion Council vs ITO reported as 68 ITD 95 ITAT Mumbai on the similar issue of foregoing travelling expenses, the Tribunal has allowed the relief to the assessee on the ground that the foreign .....

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nation and submissions of the assessee, it is apparent that the foreign travelling expenses of the assessee were incurred for the purposes of promotion of trade and industry in India as the main objective of the assessee is to promote trade and industry for which sending a delegation of foreign countries is an essential part of main objective. Ld. Counsel finally submitted that appeal of the revenue is devoid of merits and the same may kindly be dismissed. 6. On careful consideration of above su .....

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re sent to foreign countries but the main purpose is to promote trade and industry in India. It is submitted that although the expenditure is incurred for the foreign traveling but the same is for the main objectives of promoting trade and industry in India for the purposes in India. It is submitted that the case of the assessee is also fully covered by the case of Gems and Jewellery Promotion Council vs. ITO 68 ITD 95, Bombay ITAT in which there was a similar issue of foreign traveling expenses .....

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issions of the assessee and I find considerable merit in the submissions of the assessee. It is apparent that the foreign travelling expenses of the assessee are for the purposes in India as the main objective of the assessee is to promote trade and industry for which sending of delegations to foreign countries is part of the main objective. After considering all the facts and circumstances of the case I am of the view that there is no proper justification for disallowing the foreign traveling e .....

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was denied exemption in regard to the application of income from property as per second part of clause (i) of section 4(3) of the Income Tax Act 1922 ( as applicable at that time) which were applied or finally set apart for religious or charitable purposes outside taxable territories. In the present case, it is not the case of the revenue that the assessee association applied its income or receipts outside taxable territories because the issue before us only relates to expense towards foreign t .....

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