9911796707
TMI Blog2019 (3) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... n 143(1) of the Income Tax Act, 1961, (for short, 'the Act'). The assessee's case was selected for scrutiny and notice under Section 143(2), was issued. In response, the assessee appeared. The books of accounts were produced. It was noticed that the assessee has debited a sum Rs. 1,69,78,000/- towards remuneration paid to the trustees, namely, Sri Sunit Gupta and Smt. Simi Gupta. Unsigned true copies of the resolutions passed on 20-8-2004 authorising the said payment was furnished during the proceedings. The resolutions indicated that Sri Sunit Gupta is provided with a remuneration/compensation of Rs. 1,01,86,800/- for the services rendered to the Trust in pursuance to Clause 6(s) of the indenture of Trust. Similarly, Smt. Simi Gupta is pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the extent of 50% of the sum debited to foreign travel. Questioning the same, an appeal was filed before the Commissioner of Income Tax (Appeals). The appeal was partly allowed. The entire amount paid as remuneration to the Directors was allowed. So far as expenses incurred towards foreign travel is concerned, the same was disallowed. Aggrieved by the same, an appeal was filed by the Revenue and the assessee filed cross-objections before the Tribunal. The Tribunal dismissed the appeal filed by the Revenue and the cross-objection filed by the assessee was partly allowed by setting aside the disallowance, so far as foreign travel is concerned. Questioning the same, the Revenue has filed this appeal. 3. By the order dated 6-6-2011, the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Appeals) and was acknowledged by the Assessing Officer in his remand report. That the reasonability of the expenses incurred by the appellants Trust must be tested considering the relevant yardsticks and there cannot be a subjective opinion of the Assessing Officer in this regard. The Trust has been created for the purpose of doing business. Trust has earned income and the remuneration is paid to the trustees. The trustees have also paid taxes for the remuneration received by them. Therefore, it is not for the Assessing Officer to conclude what is an appropriate payment or remuneration to be paid to the trustees. The Hon'ble Supreme Court in the case of S.A Builders Ltd. v. CIT [2007] 158 Taxman 74/288 ITR 1 held that the reasonableness of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
