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of <h1>Tribunal Upholds Commissioner's Decision on Tax Disallowances and Appeal Dismissal</h1> <h3>DCIT (Exemption), Circle-Patna Versus Bijendra Memorial Society</h3> DCIT (Exemption), Circle-Patna Versus Bijendra Memorial Society - TMI Issues Involved:The issues involved in this case are the disallowance of salary/remuneration paid to specific individuals, disallowance of bus hiring charges, and disallowance of hostel building rent.Disallowance of Salary/Remuneration:The Revenue appealed against the order of the Commissioner of Income Tax (Appeals) regarding the disallowances of salary/remuneration paid to certain individuals. The Assessing Officer found the salary paid to the Secretary and Treasurer of the Trust to be excessive under Section 13(3) of the Income Tax Act. However, the Commissioner of Income Tax (Appeals) deleted the disallowance, stating that the amounts were not excessive and the individuals were rendering full-time services to the trust. The Commissioner observed that the salary payments were reasonable and essential for the trust's operations. The Tribunal upheld the decision of the Commissioner, noting that the Revenue failed to demonstrate that the salary amounts were unreasonable.Disallowance of Bus Hiring Charges and Hostel Building Rent:Additionally, the Assessing Officer disallowed bus hiring charges and hostel building rent paid by the trust, stating that the payments were unjustified. However, the Commissioner of Income Tax (Appeals) overturned these disallowances, highlighting that the activities were fundamental to the trust's objectives. The Commissioner found that the bus hiring charges and hostel building rent were essential for providing traveling and accommodation facilities to students. The Tribunal upheld this decision, emphasizing the importance of these expenses in fulfilling the trust's goals.Monetary Limit for Filing Appeal:The assessee's representative argued that the disputed tax amount in the appeal was below the monetary limit set by the Department for filing appeals before the Tribunal. The Department did not challenge this assertion. Consequently, the Tribunal found no merit in the Revenue's appeal and dismissed it.Conclusion:The Tribunal upheld the Commissioner's decision to delete the disallowances of salary/remuneration, bus hiring charges, and hostel building rent. The Tribunal also noted that the disputed tax amount fell below the Department's monetary limit for filing appeals, leading to the dismissal of the Revenue's appeal.
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