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of <h1>Appeal allowed on trustee remuneration, interest, and penalty dismissed. Tribunal decision dated August 14, 2014.</h1> <h3>PNR Society for Relief & Rehabilitation of the Disabled Trust Versus The DDIT (Exemption) Bhavnagar</h3> PNR Society for Relief & Rehabilitation of the Disabled Trust Versus The DDIT (Exemption) Bhavnagar - [2014] 34 ITR (Trib) 465 (ITAT [Ahm]) Issues involved:1. Disallowance of remuneration paid to a trustee under sections 13(1)(c) and 13(3)(cc) of the Income Tax Act.2. Disallowance of interest under sections 234B/C/D of the Act.3. Initiation of penalty proceedings under section 271(1)(c) of the Act.Analysis:Issue 1: Disallowance of remuneration paid to a trusteeThe appeal was against the disallowance of remuneration paid to a trustee under sections 13(1)(c) and 13(3)(cc) of the Income Tax Act. The Assessing Officer disallowed the deduction, treating the remuneration as taxable income, citing it as violative of the mentioned provisions. The Commissioner of Income Tax (Appeals) upheld the decision without addressing the submissions of the assessee. The Authorized Representative argued that no disallowance should be made if the remuneration is not more than the fair market value. The trustee had relevant qualifications and experience in social work, and the remuneration was a small percentage of the trust's activities. The tribunal found no evidence to show the remuneration was excessive and allowed the appeal, deleting the disallowance.Issue 2: Disallowance of interest under sections 234B/C/DThe tribunal dismissed the ground of appeal related to the interest levied under sections 234B/C/D of the Act as the assessee made no submissions during the hearing. The tribunal considered the interest levied as consequential and upheld its imposition.Issue 3: Initiation of penalty proceedings under section 271(1)(c)The ground of appeal regarding the initiation of penalty proceedings under section 271(1)(c) was dismissed as the assessee did not make any submissions during the hearing. The tribunal ruled the dismissal due to lack of prosecution.In conclusion, the appeal was partly allowed concerning the disallowance of remuneration paid to the trustee, while the grounds related to interest and penalty proceedings were dismissed. The tribunal's decision was pronounced on August 14, 2014, at Ahmedabad.
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