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TMI Blog2024 (9) TMI 1524X X X X Extracts X X X X X X X X Extracts X X X X ..... has stated that this appeal is covered by low tax effect, Mrs.V.Pushpa, learned senior standing counsel for the appellant/Revenue, has stated that there has been no instructions from the Department with regard to the low tax effect and therefore, the issue raised in this appeal has to be decided on merits. 3. We have heard learned counsel for the appellant/Revenue as well as learned counsel for the respondent/Assessee. 4. The respondent/Assessee is a charitable trust basically runs an educational institution at Chennai. In fact, the assessee trust was established in the year 1961, that is, on 01.02.1961, that is before the commencement of the Income Tax Act, 1961. 5. As per the Memorandum of Association of the assessee trust, especially ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the rejection of the claim made by the assessee trust for getting exemption under Section 11 of the Act is concerned, the payment of Rs. 1,13,400/- to the said Meenakshi Sundararajan cannot be construed as a violation of Section 13(1)(c) of the Act because the trust was established well before the Act came into force, that is, on 01.02.1961 and the Memorandum of Association of the trust had paved the way for making this amount of honorarium to the trustees. When that being so, it is strictly in consonance with the Memorandum of Association and therefore, it cannot be construed as a violation of Section 13(1)(c). 10. The Income-tax Appellate Tribunal also has considered this aspect within the meaning of Sections 13(1)(c), 13(2) and 13(3) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee is not entitled for exemption under sec.11 of the Act." Therefore, the Tribunal has come to the conclusion that the assessee is entitled to claim exemption under Section 11 of the Act. When that being so, the Assessing Authorities' move to treat the entire income as a taxable income is erroneous and therefore, the assessment order passed by the Assessing Authority as confirmed by the CIT (Appeals) has been reversed. 11. Insofar as the other issue with regard to the claim of depreciation is concerned, the Tribunal followed its own decision in M/s.Mohamed Sathak Trust in ITA.Nos.1436 and 2159/Mds/2012 dated 30.10.2013 and also decided the said issue in favour of the assessee. 12. We have gone through the decision and the reasoning ..... X X X X Extracts X X X X X X X X Extracts X X X X
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