MARY MATHA PROVINCE OF VINCENTIAN CONGREGATION,ANGAMALY vs. DCIT, EXEMPTION CIRCLE, KOCHI

Brief facts of the case are that the assessee is a charitable religious trust enjoying 12AA registration. The return of income for the AY 2012-13 was filed on 31/01/2013 declaring nil income after claiming exemption u/s. 11 of the Act. Against the said return of income, assessment was completed by the AO vide order dated 21/07/2014 passed u/s. 143(3) of the Income Tax Act, 1961 (for Mary Matha Province of Vincentian Congregation short, 'the Act') at a total income of Rs. 21,54,068/-. While doing so, the AO has disallowed expenditure of Rs. 21,54,068/- incurred outside India for the purpose of acquiring knowledge etc. by holding that expenditure incurred outside India cannot be allowed as a deduction.

Being aggrieved, an appeal was filed before the CIT(A), who vide the impugned order confirmed the action of the AO.

Being aggrieved, the assessee is in appeal before the Tribunal in the present appeal.

I have heard and carefully perused the material on record.

From reading of the order of AO as well as the order of Ld.CIT(A), I am unable to discern the reasoning of the lower authorities for disallowance of expenditure. Therefore, I set aside the matter back to the file of AO for denovo adjudication in accordance with law after affording reasonable opportunity of being heard to the assessee.