#Section 11(1)(c)

ITAT Delhi clarifies that scholarships disbursed in India for overseas education do not violate Section 11(1)(c) of the Income Tax Act, preserving tax exemption for charitable trusts. The ruling underscores that the 'application of income' test is met where funds are released domestically, even if utilized abroad, offering critical relief for educational trusts.

ITAT Mumbai rules that scholarships granted to Indian students for overseas education qualify as 'application of income' in India under Section 11(1)(c), preserving tax exemption for charitable trusts. The decision clarifies that the beneficiary's nationality, not the location of education, determines compliance with charitable purposes.