Held that the Assessing Officer had not demonstrated how the business support expenses\u00a0 paid to F Ltd. were not commensurate with the market value of the services availed of from F Ltd. an entity said to be covered under section\u00a013(3)\u00a0and thus the assessee violated the conditions under section\u00a013(2)(g)\u00a0of the Act. The statement of assessable income, balance-sheet and statement of profit and loss account of F Ltd. showed income. The disallowance is\u00a0 not sustainable. That salary expenditure\u00a0 to faculty members was disallowed due to non-filing of qualifications and experience and elaborate the services rendered by persons. The assessee had engaged highly technical qualified persons in whole-time management activities of trust as well as regular time teachers in business school. The details of educational qualification and experience in absence of any other evidence to the contrary could not be said to be not just fair and reasonable. That the payment as commission to consultants and counsellors is justified. \u00a0That keeping in view the invoices, quotations and student-wise list the disallowance of expenses\u00a0 on computers to students is\u00a0 not fair and reasonable. Additions confirmed by the CIT(A) is deleted. \u00a0(AY.2012-13)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 11 : Property held for charitable purposes-Running business school-Payment to related party-Assessing Officer had not demonstrated how payment for business support services was not commensurate with market value of services availed of–Salary expenditure to faculty members-Disallowance for failure to file qualifications of teachers not sustainable-Disallowance is not warranted-Payment of commission to Consultants and counsellors is justified-Disallowance of expenses on computers to students is not reasonable. [S.12A 13(2)(c), 13(2)(c),13(2)(g), 13(3)] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-50949","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dfL","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50949","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=50949"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50949\/revisions"}],"predecessor-version":[{"id":50950,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/50949\/revisions\/50950"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=50949"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=50949"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=50949"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}