NEW ERA SOCIAL DEVELOPMENT WELFARE SOCIETY,HANUMAN NAGAR PATNA vs. DC/AC CIRCLE EXEMPTION, PATNA

ITA 534/PAT/2025Status: DisposedITAT Patna27 August 2026AY 2020-20218 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the order of the CIT(A), finding that the salary increases to specified persons were excessively high and not justified. The payments were considered to be for the benefit of specified persons, thus not eligible for exemption under Section 11.

What were the facts?

The assessee, a charitable trust running educational institutions, made significant salary and rent payments to specified persons. The Assessing Officer (AO) and the CIT(A) found these payments to be excessive and disallowed a portion, citing violations of Section 13(1)(c) of the Income Tax Act.

What were the issues?

Whether the salary and rent payments made by the assessee to specified persons were excessive and constituted application of income for the benefit of such persons, thereby violating the provisions of Section 13(1)(c) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 13(1)(c),Section 11,Section 12A(b),Section 2(15),Section 143(2),Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, PATNA

Before: SHRI DUVVURU RL REDDY, VP & SHRI LAXMI PRASAD SAHU, AM

For Appellant: Shri Pawan Kumar, AR
For Respondent: Shri Ravi Kant Chowdhary, DR
Hearing: 28.07.2026Pronounced: 27.08.2026

Per Laxmi Prasad Sahu, AM:

This appeal is filed by the assessee against the orders passed u/s 250 of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) by the NFAC, NEW ERA SOCIAL DEVELOPMENT WELFARE SOCIETY; A.Y. 2020-21 Delhi [hereinafter referred to as “the Ld. CIT(A)] dated 22.09.2025, ITBA/NFAC/S/250/2025-26/1081001071(1). The assessee has raised following grounds of appeal:

“1. The learned CIT (A) is erred in law and facts by confirming part of partial disallowance made by learned A.O against Salary & Rent without considering the fact that payment is quite moderate and much below the fair market value.

2.

The learned CIT (A) is erred

The order continues below.

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