2019 (4) TMI 501

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....nd I.T.A. No. 36/Chny/2017 filed by the Revenue purely based on the discussions held during the course of hearing. 2. Per contra, after carefully going through the facts and circumstances, materials available on record, the Tribunal has adjudicated the cases raised in both the appeals filed by the assessee as well as Revenue and thus, there is no mistake apparent on record warranting rectification under section 254(2) of the Act.. Otherwise, it would tantamount to review of the order of the Tribunal, which is not permissible under section 254(2) of the Act. 3. We have heard both the sides, perused the order of the Tribunal. With regard to the ground of whether excess salary was paid to the Secretary of the society in terms of section ....

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....efrayed to meet administrative expenses of the Association". In this case, the point is 10% of the amount earmarked for charitable purposes was given to Shri M. Krishna Kumar as salary, who is the Secretary in excess of what may be reasonably paid for such services as defined in section 13(2)(c) of the Act. Considering the qualification, experience, etc., the ld. CIT(A) allowed 50% of the disallowance of salary paid to the Secretary, which was confirmed by the Tribunal. Thus, we find no mistake apparent on the face of the order passed by the Tribunal. Therefore, the petition filed by the assessee stands dismissed. 5. In the MP No. 222/Chny/2018, filed against the appeal filed by the Revenue in ITA No. 36/Chny/2017, the main contention is....

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....95.4% which "is a clear violation of Foreign Contribution Regulation Rules 2011, wherein it is defined that not more than 50% of the foreign contribution shall be defrayed to meet administrative expenses of the Association", which was repeated in Tribunal order at page 6 para 6, which is a rectifiable mistake. Accordingly, we replace the sentence with same terminologies that "The above claim of the assessee is a clear violation as per the Charter for Associations, who have been granted Registration or prior permission under FCRA,2010 that not more than 50% of the foreign contribution shall be defrayed to meet administrative expenses of the Association". Not more than 50% of the foreign contribution shall be defrayed to meet admi....