TaxTMI 
TaxTMI 
2026 (3) TMI 1190
X X X X Extracts X X X X
X X X X Extracts X X X X
....D) Heard Sri. Aravind V. Chavan, learned Senior Standing counsel for the appellants and Sri. A. Shankar, learned Senior counsel for Sri. Narendra Kumar Jayantilal Jain, learned counsel for the respondent. 2. These appeals are filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, 'the Act'), assailing the common order dated 03.12.2024 passed by the Income Tax Appellate Tribunal, "A" Bench, Bangalore (for short, 'the Tribunal') in ITA Nos. 290, 291 and 292/Bang/2024, pertaining to the Assessment Years 2017-18, 2018-19 and 2021-22, respectively. 2.1 The Tribunal has disposed of the appeals pertaining to the aforesaid three assessment years by a common order. These appeals were heard together and are being dis....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... dated 17.05.2023 for the Assessment Year 2017-18, 18.05.2023 for the Assessment Year 2018-19 and 15.06.2023 for the Assessment Year 2021-22. 3.3 Aggrieved by the orders passed by the CIT(A), the Revenue preferred appeals before the Tribunal. The Tribunal, under the impugned common order, recorded that for the Assessment Years 2014-15 and 2015-16, involving identical facts, the Assessing Officer had not invoked Section 13(1)(c) of the Act in the assessment orders passed under Section 143(3) of the Act. The Tribunal further recorded that there was no change either in the facts or in the legal position so as to take a different view for the assessment years under consideration. Accordingly, the Tribunal rejected the appeals filed by the Re....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... merely followed its earlier orders and thereby erroneously deleted the additions made in the assessment. 5. Sri A. Shankar, learned Senior Counsel appearing for Sri Narendra Kumar Jayantilal, learned counsel for the respondent-assessee, submits that it is incorrect to contend that the said entities derived income exclusively from the assessee-Trust. It is submitted that the entities are engaged in independent business activities apart from their transactions with the Trust. Learned Senior Counsel further submits that the existence of the entities, the purpose of the payments and the rendering of services by the concerns are not in dispute. It is contended that a higher profit margin, by itself, cannot constitute a ground to question the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on, any part of such income enures, or (ii) if any part of such income or any property of the trust or the institution (whenever created or established) is during the previous year used or applied, directly or indirectly for the benefit of any person referred to in sub-section (3) "[, such part of income as referred to in sub-clauses (1) and (ii)):" "13(3) The persons referred to in clause (c) of sub-section (1) and sub-section (2) the following, namely:- (a) the author of the trust or the founder of the institution62, (b) any person who has made a substantial contribution to the trust or institution, [that is to say, any person whose total contribution up to the end of the relevant previous year exceeds ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ated concerns in the course of carrying out the activities of the Trust. The genuineness of the said concerns and the nature of their activities have not been doubted by the Assessing Officer. The disallowance has been sought to be made by invoking Section 13(1)(c) primarily on the ground that the concerns have earned higher profits, as reflected in their statements of profit and loss. 9. It is also contended that the concerns have paid higher remuneration to their Directors. However, there is no comparative material placed on record to demonstrate that such remuneration is excessive or unreasonable having regard to the services rendered. On the contrary, the corresponding expenditure reflected against the revenue from operations indicat....