TMI Blog2014 (8) TMI 717X X X X Extracts X X X X X X X X Extracts X X X X ..... be said to be excessive or unreasonable – revenue could not controvert that the remuneration of ₹ 4,80,000/- per year was paid to the trustee by the trust in earlier years also for rendering similar services which were allowed by the Department since AY 2003-04 - in absence of any material brought to show that the remuneration paid to Shri Anantbhai K. Shah for actually rendering services as full time secretary of the trust was in excess of the amount which can be reasonably paid for services – Decided in favour of Assessee. - ITA No. 2729/Ahd/2010 - - - Dated:- 14-8-2014 - Shri Mukul Kr. Shrawat And Shri N. S. Saini,JJ. For the Petitioner : Shri Roopchand, Sr. DR For the Respondent : Shri Tushar Hemani, AR ORDE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y be allowed to be accumulated u/s 11(2) of the Act. 4.0 Both the lower authorities have erred in law and on facts in passing the orders without properly appreciating the fact and that he further erred in grossly ignoring various submissions, explanations and information submitted by the appellant from time to time which ought to have been considered before passing the impugned order. This action of both the authorities is in clear breach of law and Principles of Natural Justice and therefore deserves to be quashed. 5. As these grounds of appeal were argued together by the Authorized Representative of the assessee and the facts and issue are interconnected, they are being disposed together as under. 6. We have heard the rival subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of remuneration paid to the trustee which is not more than the fair market value can be made, and therefore, the Revenue was not justified in making arbitrary disallowance. He also pointed out that similar remuneration was paid to the same trustee in earlier years also which was accepted and allowed by the Department. 9. We find that the relevant sections read as under: Section 13(1)(c)(ii) (1) Nothing contained in section 11 [or section 12] shall operate so as to exclude from the total income of the previous year of the person in receipt thereof- (a) .. (b) .. (bb) (c) In the case of a trust for charitable or religious purposes or a charitable or religious institution, any income thereof- (i) . ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... field. He has been awarded with the following awards for his achievements and his noble services in the field of helping handicapped people particularly children: Rajiv Gandhi Manav Seva Award 1998 Felicitated by former Prime Minister of India Late Shri Morarji Desai Nagardas Doshi Smarak Nidhi Trust Award 1997 Alpalwala Award 2007 He has been declared as Man of the Year 2006 by The Week . The assessee trust is engaged in various activities for relief and rehabilitation of disabled persons such as prevention and early intervention, polio eradication, corrective surgery polio/cataract/cleft lip congenital heart defect, research, training course, workshop for artificial limbs, aids, technology transfer, physi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7; 4,80,000/- paid to Shri Anantbhai K. Shah for actually rendering services as full time secretary of the trust was in excess of the amount which can be reasonably paid for such services, we delete the disallowance of ₹ 4,80,000/-. Thus, the grounds of appeal of the assessee are allowed. 13. Ground no. 5 of the appeal of the assessee reads as under: 5.0 The learned CIT(A) has erred in law and on facts of the case in the confirming action of the ld. AO in levying interest u/s. 234B/C/D of the Act. 14. At the time of hearing, the assessee made no submission in respect of this ground of appeal. We, therefore, hold that the interest levied u/s. 234B/C/D of the Act is consequential and accordingly dismiss this ground of appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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