The Income Tax Department has withdrawn the exemption granted to Sir Dorabji Tata Trust, after the authorities found some conditions violated, Business Standard reported, citing sources.

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" The exemption claimed under Section 11 has been denied for violation of condition under Section 13 of the I-T Act," an Income Tax official told BS.

Section 11 of the Act is the exemption of the income derived from the property held in a trust or for charitable and/or religious purposes.

The official further told the paper that the violation relates to "significant compensation paid to the Trust's managing trustee R Venkataraman". The compensation paid to Venkataraman is beyond the permissible amount under the law, the sources explained.

The order is being contested, the sources said, adding that the last date to file the appeal was January 31.

First Published:Feb 6, 2019 9:36 AM IST