ITO(Exemptions) Vs JN Tata Endowment for the Higher Education of Indians (ITAT Mumbai)
ITAT Mumbai held that the disbursal of loan scholarship to students in India for study overseas as application of income for charitable purposes in India. Thus, claim of exemption under section 11 of the Income Tax Act allowed.
Facts-
The assessee trust is registered u/s 12A of the Income Tax Act, 1961 and with the Charity Commissioner under the Bombay Public Trust Act, 1950. The main objects are that the assesse trust grants loan scholarship to Indian students in India for their higher education overseas.
The assessee has filed the return of income after claiming exemption u/s 11 of the Act. Post scrutiny assessment, AO denied the claim of exemption u/s 11 of the Act. CIT(A) allowed the appeal and granted exemption. Being aggrieved, revenue has preferred the present appeal.
Conclusion-
Held that the disbursal of loan scholarship to students in India for study overseas as application of income for charitable purposes in India.
We have considered the facts, circumstances, submissions and ratio of judicial decisions as discussed above and are of the view that the CIT(A) has passed a reasoned and conclusive order. Accordingly, we do not find any infirmity in the order of the CIT(A) and uphold the same and dismiss the grounds of appeal of the revenue.
