ITO(E)-1(4), MUMBAI, MUMBAI vs. J N TATA ENDOWMENT FOR THE HIGHER EDUCATION OF INDIANS, FORT

ITA 2188/MUM/2024Status: DisposedITAT Mumbai24 July 2024AY 2012-136 pages
AI SummaryN/A

What did the Tribunal hold?

The CIT(A) deleted the disallowance, relying on the **Jamsetji Tata Trust** precedent which held that education grants to Indian students for overseas education fulfil Section 11 conditions. The Tribunal found the facts identical to the precedent and upheld the CIT(A)'s order, stating that the situs of money application, not the place where objects become effective, is relevant for exemption.

What were the facts?

The assessee trust, registered u/s 12A, granted loan scholarships amounting to Rs. 3,47,50,026/- to Indian students for overseas higher education, claiming exemption under Section 11 of the Income Tax Act. The Assessing Officer disallowed this, contending that the application of income for charitable purposes must occur within India.

What were the issues?

Whether loan scholarships provided by a trust to Indian students for overseas education constitute application of income for charitable purposes in India eligible for exemption under Section 11 of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 11,Section 11(1)(c),Section 11(1)(c)(ii),Section 12A,Section 260A

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IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “F” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND SHRI SUNIL KUMAR SINGH (JUDICIAL MEMBER) ITA No. 2188/MUM/2024 Assessment Year: 2012-13 ITO(E)-1(4), Room No. 611, MTNL Building, Cumballa Hill, Peddar Road, Mumbai-400026. Appellant Vs. J N Tata Endowment for Higher Education of Indians, 2nd floor, Bombay House, 24 Homi Mody Street, Maharashtra-400001. PAN NO. AAATJ 0085 C Respondent Assessee by : Mr. Sukhsagar Syal/Atual Suraiya Revenue by : Ms. Rajeshwari Menon, Sr. DR Date of Hearing : 08/07/2024 Date of pronouncement : 24/07/2024 ORDER PER OM PRAKASH KANT, AM This appeal by the Revenue is directed against order dated 13.03.2024 passed by the Ld. Commissioner of Income-tax (Appeals) – National Faceless Appeal Centre, Delhi [in short 'the Ld. CIT(A)'] for assessment year 2012-13, raising following grounds: 1. "Whether on the facts and in the circumstances of the case and in law, the Ld. CIT(A) erred in directing the AO to allow the benefit of exemption u/s 11 of the Income-tax Act without appreciating the fact that the application of fund utilized for grants/scholarships used for overseas education are governed u/s 11

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