Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (5) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (5) TMI 692 - AT - Income TaxExemption u/s 11 - salary paid to two specified persons u/s 13(3) - approval of the governing body of the society including the appointment and remuneration of both these persons - AO found that salary paid to these persons are excessive in comparison to the normal practice followed for other employees - HELD THAT:- The assessee, however, submitted before Ld. CIT(A) that both these persons were appointed through the resolution passed under the General Body Meeting dated 04.06.2008. It was also submitted that both these persons have devoted full time to the educational institution to the best of their knowledge, ability and experience. It, therefore, appears that A.O. followed the orders for earlier years, in which the assessee did not produce documents regarding approval of the Governing Body. Further assessee explained that Governing Body passed resolution in earlier year on 04.06.2008. A.O. did not bring any evidence on record as to how the salary paid to these persons with reference to their qualification was excessive or unreasonable. A.O. did not make any comparison, but, appears to have followed order for earlier years. In earlier year, the matter have been decided in favour of the assessee as is noted by the CIT(A) in his Order because the same salary have been considered in earlier years. CIT(A) also referred to decisions of the Coordinate Bench of Delhi Tribunal in the case of ACIT vs. Idicula Trust Society [2015 (3) TMI 191 - ITAT DELHI] in which the Tribunal has referred to the enhancement in pay/salary by Sixth Pay Commission in January, 2006. In the case of the assessee, assessee explained that salary paid to these persons was even less than the salary prescribed by the Sixty Pay Commission. Since the A.O. compared the facts of this year for earlier years, in which, relief has already been granted to the assessee as per findings of the CIT(A), therefore, CIT(A) correctly following the earlier precedence, deleted the addition - Decided in favour of assessee.
|