Benefit of remuneration, Income Tax

[shyamal roychowdhury]

The Trust deed of my client provides that the trustees will be eligible for remunaration according to work performed by them & also will be entittled to reimbursement of expences incurred by them for works of trust. The trust is also registerd under income tax & also under trust act . Accordingly trusttes drew monthly remunaration decided by trustees in their meeting & drew reimbursement for conveyance & other expences incurred,. Now assessing officer has disallowed same as benefit to trustees which is against the act . so is not taking under application of fund . Can anyone throw some lighton this ?

Posts / Replies

[CA GOPAL JI AGRAWAL]

Please see the provisions of section 13(2)(c).I think that the onus is on the assessee that the remuneration is reasonable and commensurate to the services rendered by trustees.