Jhaverbhai Patel Research Centre Vs. CIT (Exemption)

Parties Involved

Facts Summary

The assessee, Jhaverbhai Patel Research Centre, filed an application in Form 10AB for grant of registration under section 12AB of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemption) rejected the application on the grounds that the assessee had violated the provisions of section 11(1)(c) of the Act by making payments for scholarships to Indian residents for higher education outside India. The assessee argued that the payments were made in Indian rupees and the students remitted the funds themselves, hence no violation occurred. The assessee also contended that they had amended the relevant clauses in their Trust Deed to comply with the Act.…

Legal Issues

• 1. Whether the delay in filing the application in Form 10AB is excusable.
• 2. Whether the payment of scholarship in Indian rupees to an Indian resident for higher education outside India constitutes an expenditure outside India under section 11(1)(c).

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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