9911796707
TMI Blog2024 (5) TMI 1018X X X X Extracts X X X X X X X X Extracts X X X X ..... are that appellant / assessee "Shri Balaji Human Resources Development Trust" filed return of income for the year 2012-13 declaring income as NIL on 28.09.2012. The return was processed under section 143(1) of the Income Tax Act, 1961. The case was selected for scrutiny through CASS. Initial notice under section 143(2) dated 23.09.2013 was issued. Learned Authorised Representative of assessee appeared and filed requisite details and documents. The appellant / assessee is trust registered under section 12A of Income Tax Act, 1961 vide order dated 29.11.2007. The trust is engaged in field of education and running "Fostiima Business School", New Delhi. The assessee during the year under consideration declared income from college fee, bank int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by appellant trust for taking the work from that sister concern was at arm's length price or not. The Learned Assessing Officer disallowed the expenses of appellant trust on the solitary basis that FILR was an entity covered under section 13(3) of Income Tax Act and thus the appellant by availing services from it had violated conditions stipulated under section 13(2)(g) of Income Tax Act and had diverted its income during the year in favour of sister entity. 6. Learned Representative of assessee submitted that Learned CIT(A) erred in upholding disallowance of Rs. 36,60,000/- under section 13(2)(c) being the amount paid as salary to the faculty members being unjustified. It is a fact that the persons had educational qualifications and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or academic delivery to the students which intels curriculum design, course outline, lesion plan, learning outcomes for every subject and also the mapping of learning outcomes as well as a feedback of the faculty. Mr. Sharma also does Faculty selection and allotment for various courses and subjects." 7. Learned Authorised Representative for appellant / assessee submitted that Learned CIT(A) erred in confirming disallowance of Rs. 15,05,000/- being commission paid to various entities. The note justifying different commissions to consultants provide:- "In order to meet our fixed expenses it is imperative that we have a certain number of students. Pressures in the job market are such that the number of students seeking admission to MBA co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orders are well reasoned and sustainable. Appeal may be rejected. 11. From examination of record in light of aforesaid rival contentions it is crystal clear that appellant / assessee is a charitable trust registered under section 12A of the Income Tax Act vide order dated 19.11.2007. Appellant assessee is engaged in field of education and running the "Fostima Business School". Appellant/assessee has entered into memorandum of understanding dated 11.7.2011 with M/s. Fostima Integrated Learning Resources Private Limited (FILR). Appellant trust availed exemption of its income under section 11 of Income Tax Act by complying with stipulated conditions under section 12AA of Income Tax Act read with section 11 and 13 of Income Tax Act, 1961. Lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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