TMI Blog2017 (6) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... t justified in denying registration u/s.12AA r.w.s. 12A of the Act. - Decided in favour of assessee. - ITA No.997/Del/2014 - - - Dated:- 17-4-2017 - Shri I.C. Sudhir, Judicial Member And Shri B.P. Jain, Accountant Member Revenue by : Shri H.K. Chaudhary, CIT-D.R. Assessee by : S/Shri Salil Kapoor, Sumit Lal Chandani and Ananya Kapoor, Advocate. ORDER PER B . P . JAIN, ACCOUNTANT MEMBER This appeal of the assessee arises from the order of DIT(E), New Delhi dated 17.12.2013 passed u/s.12AA(1)(b) r.w.s. 12A of the Income Tax Act, 1961. The assessee has raised the sole ground of appeal as under: On the facts and circumstances of the case, the learned Director of Income Tax ( Exemption ) has erred both on facts and in law in rejecting the application of the assessee for registration under Section 12A of the Income Tax Act, 1961 . 2. The brief facts of the case as are emanating from the order of learned DIT(E) vide order dated 17.12.2013 which is reproduced for the sake of convenience as under: The applicant filed an application on 27 . 06 . 2013 in Form No . 10A seeking registration u / s . 12A of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... table trust . This section also permits deduction of expenditure incurred outside India, provided that such application of income promotes international welfare in which India is interested . However, for deduction of such expenditure, prior approval of the Board is required . In conformity with section 12, corpus donations constitute deductible expenditure under section 11 ( 1 )( d ). The word applied used in section 11 should be construed widely and not in narrow sense . We may have regard to some of the decided case . 3 . I have carefully considered the submission made by the applicant and find no merit in it . A reference is made to provisions of section 11 of the IT Act, 1961, which is reproduced as under : 11 . ( 1 ) subject to the provisions of sections 60 to 63, the following income shall not be included in the total income of the previous year of the person in receipt of the income . ( a ) Income derived from property held under trust wholly for charitable or religious purposes, to the extent to which such income is applied to such purposes in India; and where any such income is accumulated or 3 set apart f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch tends to promote international welfare in which India is interested . Moreover, the competent Authority in such case is CBDT and as such case is not covered even u / s . 11 ( 1 )( c ) of the IT Act, 1961 . 4 . In view of the detailed discussion as above, the applicants request for registration u / s . 12A of the IT Act, is hereby rejected . The applicant is however at liberty to apply again after suitably amending its provisions . 4 3. Learned counsel for the assessee, Shri Salil Kapoor, Advocate appearing along with Ms. Ananya Kapoor, Advocate argued that learned DIT(E) probably has misunderstood the facts of the case as averted himself regarding the amendment of the registration of the institution. Whereas there was no requirement of such amendment and no material has been brought on record to show why such amendment is required. It was further argued that there was no requirement for going into Section 11 which has been discussed by the learned DIT(E) at length. There is no dispute to the fact that the operations outside India are referred into main objects of the Institutions but no activities in this regard in any of the foreign country ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... any expenditure outside India has been incurred by the assessee or any activity outside India has been carried out. In such circumstances and facts of the case, the learned DIT(E) is not justified in denying registration u/s.12AA r.w.s. 12A of the Act. The reliance is placed upon the decision of Hon'ble Delhi High Court in the case of N.K. Numbyar Saarf Law Charitable Trust (supra). The relevant paragraph of the decision is reproduced hereunder: 3 . So far as the benefit of section 11 ( 1 )( a ) is concerned, it can be extended only to the extent to which such income is applied to such purposes in India . However, if the income is applied to the purposes outside India, then clause ( c ) will be applicable and if the permission is granted by the Board either by general or special order then, benefit can be extended . Section 12AA prescribes the procedure for registration . Reading the section, it becomes clear that after the application is made, the officer has to call for documents or information from the Trust to satisfy himself about the genuineness of the activities of the Trust . He can make further enquiry as he may deem necessary . It ..... X X X X Extracts X X X X X X X X Extracts X X X X
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