9911796707
TMI Blog2024 (9) TMI 1524X X X X Extracts X X X X X X X X Extracts X X X X ..... 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). 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. Claim of depreciation is concerned, the Tribunal followed its ow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... members. 6. Herein the case on hand, during the previous year of Assessment Year 2010-2011, the revenue of the Trust was Rs. 6,11,56,935/-. Since the assessee trust already registered under Section 12A(a) of the Act, it claims total exemption under Section 11 of the Act for the income registered by the assessee trust. That, in fact, was considered and rejected by the Assessing Authority on the ground that the trust had spent a sum of Rs. 1,13,400/- towards one Meenakshi Sundararajan, who is the wife of the founder of the trust. By virtue of the said amount of Rs. 1,13,400/- having been spent to the individual, it was considered to be violation of Section 13(1)(c) of the Act, thereby, according to the Assessing Authority, the assessee Trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... thorities have erred in holding that sec.13(1)(c), 13(2) and 13(3) are attracted in respect of honorarium, ex-gratia and medical expenses of Rs. 1,13,400/- paid to Ms.Meenakshi Sundararajan, who is the wife of the founder of the trust. It is the case of the assessee that the lower authorities have overlooked the first proviso to sec.13(1)(c)(ii), which provides that the provisions of sub-clause(ii) shall not apply, to a trust or institution created or established before the commencement of this Act, to any use or application, whether directly or indirectly, of any part of such income or any property of the trust or institution for the benefit of any person referred to in sub-sec.(3), if such use or application is by way of compliance with a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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