During survey it was  found that the trust had made certain payments to a company in which the trustees being  specified persons were having substantial t interest and also found that  substantial honorarium was paid to trustees and their family members .  The notice was issued against  for denial of exemption under section 11 on ground that payment out of income from property held under trust was paid directly for benefit of persons referred to in section 13(3) of the Act Assessee filed an  writ petition against said show cause notice for reason that impugned notice threatened to cancel primary exemption enjoyed by trust . The Court held that  it is a settled law that denial of exemption under section 11 should only be to extent of income which is violative of section 13(1)(d) and not total denial of exemption . Accordingly the  revenue was to be directed to only forfeit exemption under section 11 in respect of offending payments . (AY. 2016-17)