Section 16(7) in The Kerala Agricultural Income Tax Act, 1991
(7)Without prejudice to the generality of the provisions of clause (c) of sub-section (6), the income or the property of the trust or institution or any part of such income or property of the trust or institution shall for the purposes of that clause, be deemed to have been used or applied for the benefit of a person referred to in subsection (8),-(a)if any part of the income or property of the trust or institution is, or continues to be, lent to any person referred to in sub-section (8) for any period during the previous year without either adequate security or adequate Interest or both;(b)if any amount is paid by way of salary, allowance or otherwise during the previous year to any person referred to in sub-section (8) out of the resources of the trust or institution, for services rendered by that person to such trust or institution and the amount so paid is in excess of what may be reasonably paid for such services;(c)if a substantial portion of the income or property of the trust or institution is diverted during the previous year in favour of any person referred to in sub-section (8);(d)if any funds of the trust or institution are, or continue to remain, invested for any period during the previous year in any concern in which any person referred to in sub-section (8) has a substantial interest.
