Mumbai Tribunal deprecates Tax Authority's action in disallowing claim for application of income by way of donation to foreign universities approved by CBDT

Last updated: 23 April 2022

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The Mumbai Income Tax Appellate Tribunal has ruled that charitable trusts can claim donations made to foreign universities as an application of income, provided these are approved by the Central Board of Direct Taxes (CBDT). The Tribunal criticised the First Appellate Authority for disallowing such a claim, even after the tax authority had rectified its assessment to include the donation based on CBDT approval. The Tribunal emphasised consistency and the importance of adhering to CBDT's orders, noting that litigation could have been avoided.

Court :
ITAT Mumbai

Brief :
In the case of Tata Education and Development Trust (Taxpayer), the Mumbai Tribunal held that the amount spent for charitable purposes outside India, which is approved by the Central Board of Direct Taxes (CBDT), is allowable as qualifying application of income in the hands of the charitable trust.

Citation :
Mumbai Income Tax Appellate Tribunal (Tribunal), dated 24 July 2020,

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FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

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