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2022 (3) TMI 1185 - AT - Income TaxExemption u/s 11 - expenditure on advertisement was legitimate expenditure incurred for the purpose the objects of the society - whether the ld. CIT(A) was correct in holding that the expenditure on advertisement was a legitimate expenditure incurred for the purpose of object of the society? - Whether funds of the society were not applied or used or diverted for the benefit of the persons referred to section 13(3) of the Act in violation of condition laid down u/s 13(1)(c) and 13(2)(c)? - HELD THAT:- As decided in Shri Balaji Society [2017 (6) TMI 1363 - ITAT PUNE] Clause (c) of sub-section 2 of Section 13 of the Act can be invoked, if any amount is paid by way of salary, allowance or otherwise to any person referred to in sub-section 3 out of resources of the Trust for services rendered to the Trust and the amount so paid is in excess of what may be reasonably paid for such services. Thus, essential requirement for invoking the said provision is that the amount paid was in excess of what may be reasonably paid for the services. In the present case, the CIT(A) and the Tribunal have elaborately examined the accounts of the assessee, the payments made to the SBC, the payments made to other agencies for similar work, comparative rates of payments and came to the conclusion that no excess payment was made to the related person. Essentially, this is a pure question of fact. Two authorities concurrently held in favour of the assessee.
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