TaxTMI 
TaxTMI 
2014 (8) TMI 717
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.... without any reasoning and miserably failed to deal with any of the arguments put forth by the appellant. This action of ld. CIT (A) is in gross abuse of his powers and in blatant violation of principles of natural justice. The appellant, being a trust, has to approach this Hon'ble Tribunal as ld. CIT(A) failed in his duties. The appellant prays that exemplary cost be awarded to it for having to file this appeal.' 3. At the time of hearing, the Authorized Representative of the assessee submitted that he is not pressing this ground of appeal. Hence, the same is dismissed as not pressed. 4. Ground nos. 2, 3 and 4 read as under: '2.0 The ld. CIT(A) has erred in law and on facts of the case by confirming the action of the ld. A.O. in disallo....
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....ed the deduction claimed for above payment on the ground that the services rendered by Shri Anantbhai K. Shah were a duty of him as a trustee and the remuneration paid to him being violative of provisions of section 13(1)(c) and 13(3)(cc). The Assessing Officer also opined that remuneration of Rs. 4,80,000/- paid to said Shri Anantbhai K. Shah cannot be treated as application towards objects of the trust and therefore he disallowed the entire amount of Rs. 4,80,000/- and treated the same as taxable income in the hands of the assessee charitable trust. 7. On appeal, the Commissioner of Income Tax (Appeals) quoted the observations of the Assessing Officer made in the assessment order and submissions of the assessee and thereafter without con....
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....income or property, shall, for the purposes of that clause, be deemed to have been used or applied for the benefit of a person referred to in sub-section (3)- (a) ............ (b) ............ (c) if any amount is paid by way of salary, allowance or otherwise during the previous year to any person referred to in sub-section (3) out of the resources of the trust or institution for services rendered by that person to such trust or institution and the amount so paid is in excess of what may be reasonably paid for such services; Section 13(2)(c) (3) The persons referred to in clause (c) of sub-section (1) and sub-section (2) are the following, namely:- (a) ................ (b) ................ (c) ................ (cc) any trustee of t....
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.... 4,80,000/- paid to said Shri Anantbhai K. Shah was more than the fair market value of his services rendered to the assessee trust. 11. We find that the revenue could not bring any material before us to controvert the submissions of the Authorized Representative of the assessee. We find that the total receipts of the assessee trust were to the tune of Rs. 443.24 lakhs during the year under consideration and the activity undertaken by the assessee trust was to the tune of Rs. 469.87 lakhs. Thus, the remuneration of Rs. 4,80,000/- which is about 1% of the total value of activities of the trust for looking after which the same was paid, cannot be said to be excessive or unreasonable. 12. Further, we find that the Departmental Representative ....