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TMI Blog2024 (10) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... to Assessment Years 2017-18 & 2018-19. C.O. No. 118 & 117 /Mum/2024, are cross-objections by the assessee directed towards the same order of the ld. CIT(A). 2. All these were heard together and are disposed off by this common order for the sake of convenience and brevity. 3. The common grievance in revenue's appeals relate to the payments on account of salary and rent to the persons specified u/s 13(3) of the Act which the AO treated as excessive payments for denying the claim of exemption u/s 11 of the Act and which was dismissed by the ld. CIT(A). 4. Representatives of both the sides were heard at length. Case records carefully perused and the relevant documentary evidences considered in the light of Rule 18(6) of the ITAT Rules, 1963 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h the AO who was of the opinion that the income of the trust is applied for the benefit of certain specified interested persons. The belief of the AO was that the income should be applied for charitable purposes rather than for the benefit of the creators of the Trust. Taking a leaf out of the order of the ld. CIT(A) for AY 2011-12, the AO denied the claim of exemption u/s 11 of the Act and taxed the entire income of the assessee. 5.2. The assessee agitated the matter before the ld. CIT(A) and reiterated its claim of exemption. After considering the facts and the submissions, the ld. CIT(A) found that the AO has simply proceeded to disallow the payments made to specified persons but did not try to assess the reasonability of the expenses i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Vinegaon,Tal. Khalapur, Dist. Raigad, Maharashtra Village Kalote, Tal. Khalapur, Dist. Raigad, Maharashtra Village Kalote, Tal. Khalapur, Dist. Raigad, Maharashtra 3 Area of the building (in sq. ft) 8,000 55,000 55,000 4 Area of the land used for undertaking activities (in sq. ft.) (A) 43,560 1,08,900 1,08,900 5 Break-up of the rend per month Building Rent 4,50,000 Playground Rent 3,41,250 60000 3,00000 Swimming Pool Rent 1,05,000 Total Rent per month (B) 3,41,250 7,65,000 3,00,000 6 Rent per month for use of building & other facilities (based on area of land used for undertaking activities) [B/A] 7.83 7.02 2.75 7 Deposit 14,10,000 - - MMTT's Educ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... June 2017 39 26,600 10,37,400 5 Dock Cadet August 2015 to July2016 16 32,900 5,26,400 6 Deck Cadet February 2016 to December 2016 12 32,900 3,94,800 7 Saloon Rating January 2016 to June 2016 23 21,200 4,87,600 8 Saloon Rating July 2016 to December 2016 25 21,200 5,30,000 60,88,400 7. It can be seen from the first chart that the rent paid by an unrelated party in the same area is Rs.7.83/- per sq. ft. whereas the same was Rs. 7.02/- per sq. ft., till 31/03/2016 and Rs. 2.75/- per sq. ft. as on 31/03/2017 by the assessee. Similarly, rent paid to Tara Meera Education Trust by unrelated party come to Rs. 176.47/- per sq. ft. per month and the rent paid by the assessee for the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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