Approval from CBDT is not required if the Assessee-Trust has not Carried out Any Activity Outside India:

Approval from CBDT is not required if the Assessee-Trust has not Carried out Any Activity Outside India:

In a recent ruling, the division bench of the Delhi ITAT held that approval from the Central Board of Direct Taxes is not required in case of a Trust whose objects includes carrying out of activities outside India when it is evident that the has not carried out any activity outside India at the time of applying for registration. The bench further clarified that in such cases, the assessee need not amend its objects so as to get registration under section 12AA of the Income Tax Act. Assessee, National Informatics Centre services Inc, has applied for registration under section 12A of the Act. Admittedly, the main object of the assessee included activities outside India. The DIT (Exemption) denied registration to the assessee on ground that assesses case is covered by section 11(1)(c) of the Act which tends to promote international welfare in which India is interested. The authority was of the view that in such cases, the competent authority to allow registration is the CBDT. The assessee approached the Tribunal contending that the operations outside India are referred into main objects of the Institutions but no activities in this regard in any of the foreign country has been carried out till the end of the impugned year. it was therefore, submitted that since no such activity has been carried out and therefore there is no requirement of the approval of the Board.

Read more at: http://www.taxscan.in/approval-cbdt-not-required-assessee-trust-not-carried-activity-outside-india-itat-delhi/6958/

Read more at: http://www.taxscan.in/approval-cbdt-not-required-assessee-trust-not-carried-activity-outside-india-itat-delhi/6958/