The Income Tax Appellate Tribunal (ITAT), Delhi Bench, has directed the Commissioner of Income Tax (Exemptions) to grant registration under Sections 12AB and 80G of the Income-tax Act to The Oxford and Cambridge Society of India (OCSI). 

The bench of Madhumita Roy (Judicial Member) and Krinwant Sahay (Accountant Member) held that scholarships disbursed in India to Indian students for pursuing studies at overseas universities do not amount to the application of charitable income outside India under Section 11(1)(c) of the Act. 

The Oxford and Cambridge Society of India is a charitable society registered since 1982, comprising alumni of the Universities of Oxford and Cambridge residing in India. The Society’s principal objective is to promote education by awarding merit-based scholarships to Indian students pursuing postgraduate studies at Oxford and Cambridge Universities, besides encouraging academic and social interaction among alumni. 

Buy Now: INCOME TAX E-COMPILATION – JUNE 2026

The Society had applied for regular registration under Section 12AB and approval under Section 80G. However, the CIT (Exemptions) rejected both applications and also cancelled the provisional registration granted earlier.

The Commissioner cited multiple reasons for denying registration, including scholarships were ultimately utilized outside India in the United Kingdom, allegedly violating Section 11(1)(c). Beneficiaries were allegedly not selected primarily on the basis of financial need. The scholarship selection process lacked transparency. The Society allegedly failed to demonstrate any structured follow-up with scholarship recipients after completion of their studies. 

Since registration under Section 12AB was denied, approval under Section 80G was also rejected on the same basis. 

The Society argued that the scholarships are disbursed entirely within India in Indian Rupees directly into the bank accounts of students or their parents/guardians. No funds are remitted to Oxford, Cambridge, or any foreign educational institution.

The Society further submitted that scholarships are funded entirely through voluntary alumni contributions. Selection is based on both academic merit and financial circumstances. Applicants are required to disclose their economic background during the evaluation process. Data protection laws in India and the United Kingdom prevent universities from sharing details of graduating students, making post-study tracking difficult. Nevertheless, the Society maintains contact with alumni through outreach initiatives and social media, while membership remains voluntary. 

The Tribunal identified the central legal issue as whether scholarships paid in India for foreign education constitute application of income outside India under Section 11(1)(c).

Answering the question in the negative, the Bench observed that the situs of expenditure is India. Scholarship amounts are paid directly in India in Indian currency. No payments are made to foreign universities. A student’s subsequent travel abroad does not convert a domestic charitable disbursement into expenditure outside India.

Accordingly, the Tribunal held that the restriction contained in Section 11(1)(c) applies only where income itself is applied outside India and not where assistance is granted in India to Indian students. 

The Delhi Bench relied upon several recent decisions of the Mumbai Bench of the ITAT, including Jhaverbhai Patel Research Centre v. CIT(E), J.N. Tata Endowment, and R. Mangaldas Charitable Trust. These rulings consistently held that scholarships granted in India to Indian students, even if utilized for education abroad, remain charitable application of income within India and therefore do not violate Section 11(1)(c). 

The Tribunal also took note of the Society’s four decades of charitable activities, Educational objectives, Properly maintained audited accounts, and Compliance with statutory filing requirements.

Finding no defect in the genuineness of its charitable activities, the Bench held that all substantive conditions for registration under Section 12AB stood satisfied. 

Since rejection of the Section 80G application was solely based on denial of registration under Section 12AB, the Tribunal directed the tax authorities to grant approval under Section 80G as well.

Membership Required to Access Case Details & Order Copy

To view the complete Case Details and Download Order Copy, you must have an active membership. Please subscribe to continue.

Read More: Reassessment Notice Beyond 3 Years Invalid Without Rs. 50 Lakh Escaped Income: ITAT