India - Income Tax Act 2010 - Saarc

1.139 CH. III - INCOMES WHICH DO NOT FORM PART OF TOTAL INCOME S. 13any part of such income or property shall, for the purposes of that clause, bedeemed to have been used or applied for the benefit of a person referred to insub-section (3),—(a) if any part of the income or property 42 of the trust or institution is, orcontinues to be, lent 42 to any person referred to in sub-section (3) forany period during the previous year without either adequate securityor adequate interest or both;(b) if any land, building or other property 42 of the trust or institution is, orcontinues to be, made available for the use of any person referred toin sub-section (3), for any period during the previous year withoutcharging adequate rent or other compensation;(c) if any amount is paid by way of salary, allowance or otherwise duringthe previous year to any person referred to in sub-section (3) out ofthe resources of the trust or institution for services rendered by thatperson to such trust or institution and the amount so paid is in excessof what may be reasonably paid for such services;(d) if the services of the trust or institution are made available to anyperson referred to in sub-section (3) during the previous year withoutadequate remuneration or other compensation;(e) if any share, security or other property is purchased by or on behalfof the trust or institution from any person referred to in sub-section(3) during the previous year for consideration which is more thanadequate;(f) if any share, security or other property is sold by or on behalf of thetrust or institution to any person referred to in sub-section (3) duringthe previous year for consideration which is less than adequate;43[(g) if any income or property of the trust or institution is diverted duringthe previous year in favour of any person referred to in sub-section(3):Provided that this clause shall not apply where the income, or thevalue of the property or, as the case may be, the aggregate of theincome and the value of the property, so diverted does not exceed onethousand rupees;](h) if any funds 44 of the trust or institution are, or continue to remain,invested 44 for any period during the previous year (not being a periodbefore the 1st day of January, 1971), in any concern 44 in which anyperson referred to in sub-section (3) has a substantial interest.(3) The persons referred to in clause (c) of sub-section (1) and sub-section (2) arethe following, namely :—(a) the author of the trust or the founder 44 of the institution 44 ;42. For the meaning of the terms “property” and “lent”, see Taxmann’s Direct Taxes Manual,Vol. 3.43. Substituted by the Finance Act, 1972, w.e.f. 1-4-1973.44. For the meaning of the terms/expressions “funds”, “founder”, “invest”, “any concern” and“institution”, see Taxmann’s Direct Taxes Manual, Vol. 3.