Held that the assessee had utilised the funds in accordance with the terms and conditions of the grant and the grants were not to be utilised for any other purpose than for which issued and also that the execution of the project was not be entrusted to any other organization. Therefore, it was evident that the assessee was not free to use the funds voluntarily as per its own whims and fancies and they had to be spent according to the terms and conditions of the grant. There was no legal infirmity or error in the order of the Commissioner (Appeals) in deleting the addition.(AY.2012-13 to 2014-15)
ITO (E) v. Sports Goods Export Promotion Council (2022) 99 ITR 41 (SN) (Delhi)(Trib.)
S. 11 : Property held for charitable purposes-Grants in aid received from Government-Grants sanctioned for participation in specific events held abroad-Separate account for projects to be maintained Expenses on specialised fairs and buyers seller meet abroad not to be disallowed. [S.11(1)(c)]