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2019 (4) TMI 196 - ITAT PUNEExemption u/s 11 and 12 - allowability of salary and perquisites to its trustees - allowability of utilization fees paid to the trustees for use of assets - Scope of section 13(1)(c) - HELD THAT:- it is not not disputed that both trustees were professionally qualified doctors, who besides looking after the administration and running of hospital, were also providing services to the hospital. The payment to them was also linked to the fees collected from the patients. The total professional charges paid to them where the payment is made for rendering professional services to the assessee trust, it cannot be held to be for the direct or indirect benefit of trustees. We find no merit in the orders of authorities below in invoking provisions of section 13(1)(c) in the present set of facts. Accordingly, we hold that professional fees paid to two trustees is to be allowed as deduction. Disallowance of utilization fees paid to the trustees - payment against equipment and assets owned by trustees, but used by trust - HELD THAT:- There is no finding that utilization fees paid is excessive or is for the direct or indirect benefit of any person. In the absence of the same and where the facilities of using equipment and services were provided by the trustees to the assessee trust, then utilization fees linked to such facilities or services is to be allowed as deduction in the hands of assessee. We find no merit in the orders of authorities below in this regard. Both the issues decided in favour of assessee
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