2026 (6) TMI 283

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....sed by the Assessing Officer, Circle Exempt 1(1), Delhi (hereinafter referred as "the AO") under section 143(3) of Income Tax Act, 1961 (hereinafter referred as "the Act") pertaining to Assessment Years 2018-19 and 2022-23, respectively. 2. Since the above captioned appeals were heard together and the facts in issues are identical, both the appeals are being disposed of by this common order for the sake of convenience and brevity. 3. The grounds of appeal of the assessee in ITA No.1183/Del/2026 are as under : 1. That the assessment order dated 16.04.2021 passed under Section 143(3) of the Income-tax Act, 1961 ("the Act") and the appellate order dated 09.12.2025 passed by the National Faceless Appeal Centre ("NFAC"/"CIT(A)") a....

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....ange in facts, the principle of consistency mandates acceptance of such remuneration in the impugned year as well. The CIT(A) has erred in ignoring the said principle. 7. That the authorities below have erred in invoking Section 13(1)(c) of the Act without invoking or applying Section 13(2)(c), which is the qualifying statutory provision in cases involving remuneration paid to specified persons; such invocation is ultra vires, misconceived and unsustainable in law. The CIT(A) has erred in confirming the same. 8. That the Assessing Officer has erred in making an addition of Rs. 1,31,100/- on account of rent relating to civil repairs undertaken once in five years, without displacing the assessee's explanation, without de....

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....red in not considering the detailed written submissions, additional evidences and the application filed under Rule 46A of the Income-tax Rules, 1962, thereby violating the principles of natural justice and rendering the impugned disposal unsustainable in law. 3. That without prejudice, the impugned appellate disposal is contrary to the scheme of section 250 of the Act, as no reasons have been recorded, no issues have been adjudicated on merits and the Appellant has been denied the opportunity of hearing and effective representation." 5. Brief facts of the case are that the assessee is a charitable trust registered u/s 12A and engaged in imparting education through schools at Meerut and Dehradun. Assessee filed its original retur....

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....e Act and also in A.Y. 2022-23, no addition was made on account of salary. On the other hand, the ld DR relied on the orders of AO/CIT(A). 8. We have heard the rival submissions and perused the material available on record. We find that the department itself has accepted the salary paid as being within the limit and not excessive u/s 13(2)(c) of the Act in years prior as well as after years. In A.Y. 2023-24, also the AO has made detailed discussion and no addition has been made on account of salary. We, therefore, are of the considered view that the salary paid to the trustee is reasonable and not excessive u/s 13(2)(c) of the Act and therefore, addition made are deleted on this count. 9. On the second ground of addition made of Rs 1,....