https://www.taxtmi.com/caselaws?id=331757 Denial of charitable exemption turned on whether payments to trustees or related persons were excessive or conferred indirect benefit. The court found lease rent and interest paid by the institution were not shown to be above normal market rates; comparisons rejected by the revenue were unreliable. Evidence that trustees offered lower risk alternatives or could have obtained different bank rates did not establish misuse of trust income. The court applied the principle that routine commercial transactions with specified persons do not attract adverse consequences unless payments are unreasonable or directly benefit those persons, and therefore decided in favour of the assessee. en-us Tue, 23 Aug 2016 00:00:00 +0530 Mon, 09 Feb 2026 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=331757 Denial of charitable exemption turned on whether payments to trustees or related persons were excessive or conferred indirect benefit. The court found lease rent and interest paid by the institution were not shown to be above normal market rates; comparisons rejected by the revenue were unreliable. Evidence that trustees offered lower risk alternatives or could have obtained different bank rates did not establish misuse of trust income. The court applied the principle that routine commercial transactions with specified persons do not attract adverse consequences unless payments are unreasonable or directly benefit those persons, and therefore decided in favour of the assessee. Case-Laws Income Tax Tue, 23 Aug 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=331757