Income-Tax dept withdraws exemption granted to Dorabji Tata Trust

Move is linked to managing trustee's 'significant' compensation

The income-tax department has withdrawn the exemption granted to Sir Dorabji Tata Trust, one of the oldest and biggest philanthropic organisations in the country, in a move that could adversely hit the $103-billion salt-to-software Tata group. The withdrawal order was issued on December 31, 2018, after the authorities found violation of certain conditions required for claiming tax exemptions. 

Confirming the development, an I-T official said, “The exemption claimed under Section 11 has been denied for violation of condition under Section 13 of the I-T Act.” The alleged violation relates to “significant compensation paid to the Trust’s managing trustee R Venkataramanan’’,