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2018 (8) TMI 748 - AT - Income TaxExemption u/s 11 - educational institution / university - addition of surplus - founder of the trust, treasure of the trust, member of trust are getting personal benefit in the form of salary - Application or use of income or property for the benefit of persons referred to section 13(3) - Held that:- It is apparent that the payment made to these persons clearly attracts the provisions of Sections 13(1) and 13(2) of the Act however, only to the extent of the payment which is found to be excess of what may be reasonably paid for such service. In case no services were rendered then the entire payments to such persons would be treated as the application of income of the trust in violation of the provision of Section 13(1) r.w.s. 13(3) of the Act and therefore, to the extent of the payment the benefit of Section 11 will not be available. Since neither the AO nor the ld. CIT(A) has examined the relevant facts on the point whether all these persons possess the requisite qualification for holding the position as shown by the assessee and further whether they have rendered any services to the trust. - Matter remanded back.
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