https://www.taxtmi.com/caselaws?id=213160 ITAT DELHI - AT deleted the AO's addition for alleged excessive payments under section 13(3)/40A(2)(b), holding that provisions of s.40A(2)(b) do not apply to entities assessed under ss.11-13 and that s.13(3) is the appropriate analogue. The Tribunal found that small disallowances do not automatically strip charitable status and that amounts must be directly or indirectly for benefit of persons in s.13(3) to trigger disqualification. Salary payments for two employees were upheld as reasonable in light of the 6th Pay Commission-related increases, so the AO's disallowance was deleted. en-us Mon, 30 Apr 2012 00:00:00 +0530 Fri, 24 Oct 2025 15:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=213160 ITAT DELHI - AT deleted the AO's addition for alleged excessive payments under section 13(3)/40A(2)(b), holding that provisions of s.40A(2)(b) do not apply to entities assessed under ss.11-13 and that s.13(3) is the appropriate analogue. The Tribunal found that small disallowances do not automatically strip charitable status and that amounts must be directly or indirectly for benefit of persons in s.13(3) to trigger disqualification. Salary payments for two employees were upheld as reasonable in light of the 6th Pay Commission-related increases, so the AO's disallowance was deleted. Case-Laws Income Tax Mon, 30 Apr 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=213160