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TMI Blog2022 (10) TMI 167X X X X Extracts X X X X X X X X Extracts X X X X ..... n observance of the condition in section 11(1 )(c) of the Act amounts to treating the said section 'infructuous'. 3. On the facts and in the circumstances of the case and in law, whether the Ld. CIT (A) was correct in not appreciating that it was not established that the amount given as grant for specified purpose was actually utilized for the said purpose. 4. On the facts and in the circumstances of the case and in law, whether the Ld. CIT (A) was correct in not appreciating as to whether it is open and permissible for a trust to receive any amount for any activity, which is not forming part of its income u/s 11 and 12 of the Act, especially after incorporation of proviso to section 2(15) of the I. T. Act. 5. On the facts and in the circumstances of the case and in law, whether the Ld. CIT (A) was correct in treating of the Govt, grant as exempt income, not to be included as receipt without appreciating that as per I. T. Act no such exemption has been made for Govt, grants, even though for specific purposes, 6. The appellant craves leave to add, to alter or amend any ground of appeal raised above at the time of hearing." 3. Supporting the assessment order the Ld. Sr. DR s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the CBDT as required under the said section. 4.2.3.2. The appellant has relied upon the judgment of the Hon'ble ITAT Delhi in the case of Apparel Export Promotion Council for the year 1998- 99 in ITA No.2613/Del/2005 where expenditure incurred outside India on participation in fairs, buyers and sellers meets and delegation expenses have been allowed. If has further been mentioned that the appeal of Revenue has been dismissed by the Hon'ble Delhi High Court and Hon'ble Supreme Court. It has also been submitted that the case of the appellant is exactly the same as referred to in the case of Apparel Export Promotion Council and that the formation of aims and objects are also similar, the only difference being the product segment, i.e., promotion of export of sports item of India in the case of appellant as against apparel by Apparel Export Promotion Council. It has also been submitted that Ministry of Commerce is providing grants to the appellant to achieve the objects of export promotion and the said grant specific to the fares and exhibition or programmes for promotion of Indian Export of Supports Goods and Toys. It has further been submitted that the appellant does ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment order submission of the assessee and the remand reports both by Assessing Officer as well as comments of Joint Commissioner of the Income Tax and also the rejoinder of the assessee. While dealing with the appeal filed by the assessee and it is found by the Ld.CIT(A) that the grant in aid has been sanction for participation in specific events mentioned hereunder:- i. Participation in ISPO 2010 at Germany ii Participation in Spielwarenmesse International Toy Fair at Germany iii Participation in American International Toy Fair at America 10. The Ld.CIT(A) further found the following in respect of above grant are as under:- a). Grants have to be kept in separate account with State Bank of India/ its subsidiaries/Nationalized Banks. b). Detailed account of each payment are to be kept together with the documents/vouchers etc. as evidence of actual expenditure. c). Grant is not to be diverted or utilized for the purpose other than that for which it is sanctioned. It has also been mentioned that the execution of project/study for which the grant is made shall not be entrusted to another institutions or organizations. d). The accounts of project shall be open for audit by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ize 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. In the said case, the reliance had also been based on the findings in the case of Nimral Agricultural Society Vs. Income Tax Officer. The relevant extract is as under:- "10. The grants received from Bread for the World were for specific purposes. The grants which are for specific purposes do not belong to the assessee-society. Such grants do not form corpus of the assessee or its income. Those grants are not donations to the l assessee so as to bring them under the purview of section 12 of the Act. Voluntary contributions covered by section 12 are those contributions freely available to the assessee without any stipulation which the assessee could utilize towards its objectives according to its own discretion and judgment. Tied-up grants for a specified purpose would only mean that the assessee, which is a voluntary organization, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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