Held that the managing trustee is paid unreasonable and excessive salary. The assessee failed to prove that the vehicle was used for performing its charitable activity and also foreign tour of manging trustee for object of the Trust. Denial of exemption is justified. Tribunal also held that when there is violation of section 13(2) and 13(1)(c), the trust has to be taxed at maximum marginal rate under section. 164 (2) on its income.[ S. 13(1)(c), 13(2)(c), 164(2)] (AY. 2011-12)
Seth Ramdas Nathubhai Dharmadaya Vishwastha Nidhi v.ITO (E) (2023) 224 TTJ 194 (Pune)(Trib)
S. 11 : Property held for charitable purposes-Managing trustee is paid unreasonable and excessive salary-Failure to prove that the vehicle was used for performing its charitable activity-Foreign tour of manging trustee-Denial of exemption is justified-When there is violation of section 13(2) and 13(1)(c), the trust has to be taxed at maximum marginal rate under section. 164 (2) on its income.[ S. 13(1)(c), 13(2)(c), 164(2)]