Case Law Details
Brief of the Case
ITAT Bangalore held In the case of DDIT (Exemptions) vs. Ohio University Christ College that it is not disputed that the services have been rendered by the faculty members from Ohio University in India as the classes were taken in Bangalore. The services have been utilized for the purposes of the Trust’s objectives in India, viz. of imparting higher education in India. Ohio University has also offered the income earned by it from the assessee trust to tax in India. Merely because the payments are made outside India, it cannot be said that the charitable activities were also conducted outside the country. Hence exemption u/s 11 cannot be denied.
Facts of the Case
The assessee, is a public charitable trust registered under Section 12A of the Income Tax Act, 1961 (in short ‘the Act’), established for the purpose of promoting education without any profit motive. The assessee reportedly conducts MBA programmes in India in collaboration with Ohio University, USA. For the Assessment Years 2008-09 & 2009-10, the assessee had filed the returns of income declaring NIL income after application of income under Section 11 of the Act. The returns were processed under Section 143(1) of the Act and subsequently the case was selected for scrutiny. The assessments were concluded under Section 143(3) of the Act vide orders dt.22.12.2010 for Assessment Year 2008-09 and dt.15.12.2011 for Assessment Year 2009-10, wherein additions/disallowances under various heads were made.
Disallowance of Faculty Teaching Charges payable to Ohio University
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