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2015 (6) TMI 1130 - AT - Income TaxExemption u/s 11 & 12 - Held that:- The income of the assessee should be assessed as per section 11 & 12 of the Act and if the assessee is able to establish that 85% or more of the income of the assessee has been utilized for the purpose of assessee institution then the income of the assessee should be exempt. Because there is no finding of the authorities below on this aspect of the matter, we restore the matter back to the file of the Assessing Officer for fresh decision after examining the facts of the present case regarding application of income for the purpose of objects of the assessee trust/institution. Payment of salary to persons specified u/s 13(3) was excessive - Held that:- Said disallowance of ₹ 5.40 lac was deleted by the Tribunal in earlier years on the basis that the gross receipt has increased substantially in comparison to the earlier years but the payment of remuneration is the same and therefore, if the payment of remuneration was held to be allowable in the earlier year, the same cannot be said that it is excessive in the present year. The Learned D.R. of the Revenue could not point out any difference in facts and therefore, we do not find any infirmity in the order of CIT(A) on this issue. Ground No. 4 is rejected. Non deduction of tds - addition deleted by CIT(A) that since the registration granted to the assessee u/s 12A has been restored, the disallowance is not justified particularly when the provisions of section 13 are not applicable - Held that:- We fail to understand the basis adopted by CIT(A) to delete this disallowance because when the disallowance was made by the Assessing Officer for the reason that TDS was not deducted from interest payment, such interest payment cannot be considered as an expenditure for computing the income of the assessee and therefore, the assessee has to show utilization of 85% of such increased income after making disallowance for non deduction of TDS. We, therefore, reverse the order of CIT(A) on this issue and restore that of the Assessing Officer but there will be no actual addition on this account if the assessee is able to establish that the income of the assessee after making disallowance was utilized to the extent of 85% or more of such income. The A.O. should decide this issue afresh as per above discussion after affording reasonable opportunity of being heard to the assessee
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