Foreign travel expenditure incurred for obtaining donations is allowable

Agastya International Foundation Vs ACIT (ITAT Bangalore)

ITAT Bangalore held that foreign travel expenses incurred for obtaining donations which are utilized for charitable purpose is allowed as expenditure.

Facts- Assessee is a charitable trust registered u/s. 12A of the Act. Assessee has also got registration under FCRA. For A.Y. 2016-17, return of income was filed declaring Nil income, after claiming exemption u/s. 11 of the Act. Subsequently, a revised return was filed declaring ‘Nil’ income (the revised return was filed since there was change in corpus donations).

The assessment was selected for scrutiny and notice u/s. 143(2) of the Act was issued on 08.08.2018 which was duly served on the assessee trust. Assessment u/s. 143(3) of the Act was completed by making disallowance of expenditure incurred on foreign travel amounting to Rs.3,18,866/-.

CIT(A) uphold the disallowance. Being aggrieved, the present appeal is filed.

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