Document Fragment View

Matching Fragments


   Child Sponsorship Program (CDSP)


      Caruna Bal Vikas (CBV), India      Objects: Primarily Child development and
      Registered u/s. 12AA as Public                      related.
             Charitable Trust




         Channel Partners (CPs)                Object: Vary from Religious,
                                                   Charitable/ mixed
        Some registered as Public
       Charitable Trusts, some as
         Public Religious Trusts




          Projects across India            In the Stales of Tamilnadu, Karnataka,
                                          Kerala, AP & Telangana, Haryan, Punjab,
                                          UP, Uttarkhand, Maharashtra & Gujarat.
                                 :-6-:          ITA. Nos: 13, 16, 17 & 18/Chny/2020

17. We have heard the rival contentions and gone through the facts and circumstances of the case. It is an admitted fact that the Caruna Bal Vikas is a registered society in the state of Tamilnadu and also registered u/s. 12AA of the Act and carrying on the objects as a public charitable trust. During the above said assessment years the trust had been received the tied up grants from the Compassion International (CI), USA to utilize such funds towards the objects as specified in the Memorandum of Understanding (MoU) dated 06.05.2002 entered between assessee and the CI. Accordingly, the assessee has spent the tied up grants towards the specified objects by appointing various channel partners by way of :-21-: ITA. Nos: 13, 16, 17 & 18/Chny/2020 transferring the funds received. Incidentally, the assessee has incurred certain expenditures towards administrative and other expenses for identifying right channel partners and their activities and for monitoring such channel partners for having utilized the grants transferred towards the activities/objects as mentioned in the MoU.

20. The assessee also relied on the decision of Hon'ble High Court of Calcutta in the case of CIT vs Birla Janahit Trust [1994] 73 Taxman 465 (Cal), wherein it has held as under:

"11. In our view, therefore, the expenditure on salaries and miscellaneous expenses for the purpose of carrying out the objects and purposes of the trust must be considered as application for charitable purposes. However, in this case the quantum of the expenditure for carrying out the objects and purposes of the trust and the expenditure made to earn the income had not been separately allocated or determined. We, therefore, answer the second question by saying that the Tribunal was right in holding that the assessee will be entitled to the benefit of the expenditure made on salaries and miscellaneous expenses for the purpose of carrying out the objects and purposes of the trust only."