Dorabji Tata Trust challenges I-T dept's decision to withdraw tax exemption

The Trust is learnt to have contested the findings of the assessing officer, saying the 87-year old Trust deed provides for the compensation to its trustee

The Dorabji Tata Trust has challenged the income-tax department’s decision to withdraw tax exemption to the organisation. The trust has moved the Commissioner of Income Tax (CIT) Appeals, considered to be the first appellate authority to hear a tax grievance.

On December 31, 2018, the I-T department had issued an order denying exemption to the Trust for alleged violation of certain conditions relating to ‘’significant compensation’’ paid to Managing Trustee R Venkataramanan. 

“The trust has challenged the assessing officer’s order in the CIT appeals. It has also sought a stay on the tax demand raised against it,” according to an