Case Law Details
ITO Vs Sports Good Export Promotion Council (ITAT Delhi)
It is the case of the assessee before the Assessing Officer that ‘as per Section (11)(1)(a) of the Act following income shall not be included in the total income of the previous year of the person in receipt of the income derived from property held under trust wholly for charitable or religious purpose, the extent to which such income is applied to such purposes in India and where any such income is accumulated or set apart for application to such purposes in India. In the organization in subject, Exhibitions organized abroad would not make activities of the assessee being carried out outside India. The benefits of such exhibitions will ultimately go to the assessee and its members. Hence it cannot be said that activities of the assessee were carried outside India. Therefore, the expenses under the head “expenses on specialized fairs and buyers seller meet aboard of Rs. 3,24,65,367/- would be the income applied for charitable or religious purpose in India as per Section 11(1)(a) of the Act’.
- The Ld. A.O is of the opinion that as per Section 11(1) of the Act, income applied on activities outside India is not liable for exemption, unless the charitable organization happens to be trust created before 01/04/1952 or engaged in promotion of International Welfare in which India is interest and the Central Board of Direct Taxes has granted the exemption by general or special order. Therefore, the said expenses incurred by the assessee has been disallowed and passed assessment order on 20/03/2015 by computing taxable income at Rs. 3,24,65,367/- as against the NIL return of income.
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