2019 (5) TMI 692

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....ssessee failed to produce any document regarding approval of the governing body of the assessee society regarding the appointment and remuneration of both the specified persons Sh. Devashish Gaur, Director cum Administrator (son of Chairman of the assessee society) and Ms. Sharda Sharma, Principal/Administrator (wife of Chairman of the assessee society). (ii) On the facts and in the circumstances of the case and in law, the Ld. CIT(A) has erred in ignoring the fact the salaries paid by assessee to these specified persons were excessive in comparison to the normal practice followed for other employees, thereby committed violation within the meaning of provisions of section 13(1)(c) of the Act by providing benefits to the above speci....

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....s. 5,23,680/-. Both are son and wife of the Chairman of the society Shri K.R. Sharma. Both are specified persons. The A.O. noted that in previous assessment years the assessee could not produce any documents regarding approval of Governing Body of the society regarding the appointment and remuneration of both these persons. The salary paid to these specified persons are excessive in comparison to the normal practice followed for other employees, therefore, exemption under section 11 was denied and the income was computed in the status of AOP. The total income was computed at Rs. 1.37 crores. 3. The assessee challenged the findings of the A.O. before the Ld. CIT(A) and the same facts were reiterated. It was further submitted that both the....

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....ing the submissions of the Ld. D.R, we are of the view that no interference is called for in the matter. The A.O. noted that salary have been paid to two persons who were specified persons under section 13(3) of the I.T. Act. A.O. also noted that in previous assessment years, the assessee could not produce any documents regarding approval of the governing body of the society including the appointment and remuneration of both these persons. The A.O. also found that salary paid to these persons are excessive in comparison to the normal practice followed for other employees. The assessee, however, submitted before Ld. CIT(A) that both these persons were appointed through the resolution passed under the General Body Meeting dated 04.06.2008. It....