correct and, therefore, expenditure on account of
remuneration to trustees and their relatives was incurred for the objects of
the trust and no violation ... Accordingly, I hold that the
entire expenditure on account of remuneration to the trustees and their
relatives was incurred for the objects of the trust
issue of
reasonableness of salary paid to the Managing Trustee and the Trustee
Secretary. The ld. AO observed looking at the salary payment schedule ... payment of remuneration to the Managing Trustee and the
Trustee Secretary. It was seen that the payment of remuneration
continued even when the main activity
objected to the reasonableness of certain expenditure which were
pertaining to the trustees and held that the same is not binding on the
Commissioner ... 160250/-
Building Rent Rs.840000/-
Remuneration to son of the Trustees Rs.120000/-
Remuneration to Daughter-in-law of the Trustee Rs.120000/-_
Total
when the expenses were infact for the image building of the
founder Trustee and not for the objects of the Trust, thus squarely in violation ... justified in allowing remuneration paid to relatives of Trustees to the
tune of Rs. 22,81,528/- holding that nothing has been brought on record
writing. There were four trustees who accepted the funds for utilisation in the manner indicated by the settlor. Trustees were entitled to carry on business ... properties and assets and including all the outgoings including the remuneration of the trustees and also the costs of the ordinary repairs and maintenance
exorbitant salary
to Chief Trustee, also that the trust will incur expenditure for the
trustees and family members of the trustees. He submits that ... free of cost residence facility and appropriate remuneration
for running livelihood of the chief trustee was made. A similar provision
justified in allowing remuneration paid to relatives of
Trustees to the tune of Rs.69,11,783/- holding that nothing has been brought
on record
remuneration of Rs.50,000/- per month for looking after the
general administration of the hospital. The AO has brought on
record the remuneration paid ... administration of the hospital. Thus, the remuneration paid to Mrs.
Bharti Mangeshkar is much less than the remuneration paid to
persons placed in similar circumstances
time. The Assessing
Officer has also pointed out that the justification of
remuneration of more than Rs.1 Core is also not acceptable
and Shri ... societies were
having other full time employees, and the Boards of trustees
were having 7 members including Shri M.N. Navale. On this
count, also
total consultancy fees of Rs.53,44,934/- paid to
four trustees. In this regard, the Assessing Officer observed that the
consultancy fess paid ... shifted his
private practice to the trust hospital. Looking at the remuneration
generated by Dr. Kandekar for the assessee trust, it could not be
established
