TMI Blog2014 (2) TMI 474X X X X Extracts X X X X X X X X Extracts X X X X ..... iolated provisions of S.13(1)(c) of the Act - The expenses incurred are reasonable - This is not a case whether the Founder Trustee has been remunerated - It is a case where reasonable expenses were incurred for a furtherance of objectives of the Trust – thus, the order of the First Appellate Authority is upheld – Decided against Revenue. - ITA No. 2745/Del/2011 - - - Dated:- 7-2-2014 - Shri A. D. Jain, JM And Shri J. Sudhakar Reddy, AM,JJ. For the Appellant : Sh. Anil Bhala, Adv. For the Respondent : Sh. Gunjan Prashad, CIT, D.R ORDER Per J. Sudhakar Reddy, AM This is an appeal filed by the Revenue directed against the order of the Ld.Commissioner of Income Tax (Appeals)-XXI, New Delhi dated 10.3.2011 pertaining to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) r.w.s. 13(3) of the Income Tax Act. 3.1. The First Appellate Authority admitted additional evidence under rule 46'A'. He forwarded the additional evidences to the AO and called for a remand report. The AO vide letter dt. 8.10.2010 filed a remand report. After considering all the papers on record, the Ld.CIT(A) held that the assessee was entitled to exemption u/s 11 by holding that Dr.C.Gopalan who was 93 years old, was a scientist of international repute and that he did carry on research work from his office cum residence. He vacated the finding of the AO that the assessee did not carry out any research work and was rendering professional services and received remuneration in lieu of it. 4. On the issue of violation of S.13(1)(c ), he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the Ld.CIT(A) has accepted additional evidences under Rule 46(A)(1)(c ) and that an affidavit was accepted from Prema Ramachandran, Director of Nutrition Foundation of India, and that the AO did not have an opportunity to verify the contents of the affidavit or cross examine Prema Ramachandran. He relied on the decision of Hon'ble Delhi High Court in the case of CIT vs. Nova Promoters and Finlease (P) Ltd. in ITA 342/2011, and submitted that the issue should be restored to the file of AO for fresh adjudication. 7. The Ld.Counsel for the assessee Mr.Anil Bhalla on the other hand filed a paper book running into 157 pages and submitted that Dr.C.Gopal is a Padma Vibhushan and is an internationally renowned scientist in the field of Mal n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on rent in building owned by its President - Assessing Officer denied exemption on grounds that expenses of office rent and electricity bills paid by Trust was for personal benefit of President/Secretary of Trust - However, it was found that President and Secretary of Trust were providing voluntary services to trust for which they did not charge any fee/remuneration and office at same premises of resident saves expenditure on conveyance - Further, electricity charge was meager - Furthermore, separate ;account had been maintained for paying genuine rent and electricity charges - Whether deduction was to be allowed on said expenditures and exemption was to be granted to trust - Held, yes (para 12) (in favour of assessee). (b) The Cuttack Tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of S.13(1)(c ). The assessee paid security charges of Rs.6,167/- rent of Rs.24,000/- (i.e. Rs.2,000/- p.m.) for the year in respect of the premises B-37, Gulmohar Park, New Delhi. Certain expenses were also incurred on telephone, water, electricity and also towards staff welfare. The issue is whether such payments were for the personal benefit of Dr.C.Gopalan. The profile of Dr.C.Gopalan are at pages 79 to 82 of the paper book. He is an internationally renowned Nutritional Scientist who held the position of Director in the "National Institute of Nutrition" and was Director General of "Indian Council of Medical Research". He is a Fellow of the Royal Society and has been awarded "Padma Vibhushan". Dr.C.Gopalan is the guiding force behind th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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