https://www.taxtmi.com/caselaws?id=769358 The court addressed whether payment of salary to a related person defeats charitable exemption where the payment matched services rendered. It held that remuneration which is reasonably payable for bona fide services cannot be treated as having been applied for the benefit of a prohibited person under the disqualifying clauses, and therefore does not attract denial of exemptions under the trust provisions. The HC upheld factual findings (accepted by Revenue and examined by ITAT) that the salary was not excessive, and ruled for the assessee, overruling a contention that any payment to a specified person automatically vitiates exemption. en-us Mon, 21 Apr 2025 00:00:00 +0530 Mon, 09 Feb 2026 14:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769358 The court addressed whether payment of salary to a related person defeats charitable exemption where the payment matched services rendered. It held that remuneration which is reasonably payable for bona fide services cannot be treated as having been applied for the benefit of a prohibited person under the disqualifying clauses, and therefore does not attract denial of exemptions under the trust provisions. The HC upheld factual findings (accepted by Revenue and examined by ITAT) that the salary was not excessive, and ruled for the assessee, overruling a contention that any payment to a specified person automatically vitiates exemption. Case-Laws Income Tax Mon, 21 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769358