2024 (9) TMI 1524

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....nsel appearing for the respondent/assessee, has stated that this appeal is covered by low tax effect, Mrs.V.Pushpa, learned senior standing counsel for the appellant/Revenue, has stated that there has been no instructions from the Department with regard to the low tax effect and therefore, the issue raised in this appeal has to be decided on merits. 3. We have heard learned counsel for the appellant/Revenue as well as learned counsel for the respondent/Assessee. 4. The respondent/Assessee is a charitable trust basically runs an educational institution at Chennai. In fact, the assessee trust was established in the year 1961, that is, on 01.02.1961, that is before the commencement of the Income Tax Act, 1961. 5. As per the Memorandum....

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....ellate Tribunal has held that the first issue with regard to the rejection of the claim made by the assessee trust for getting exemption under Section 11 of the Act is concerned, the payment of Rs. 1,13,400/- to the said Meenakshi Sundararajan cannot be construed as a violation of Section 13(1)(c) of the Act because the trust was established well before the Act came into force, that is, on 01.02.1961 and the Memorandum of Association of the trust had paved the way for making this amount of honorarium to the trustees. When that being so, it is strictly in consonance with the Memorandum of Association and therefore, it cannot be construed as a violation of Section 13(1)(c). 10. The Income-tax Appellate Tribunal also has considered this asp....