https://www.taxtmi.com/caselaws?id=769535 ITAT Cochin allowed the appeal and directed registration u/s 12A to be granted to the trust. The court held that mere existence of a clause in trust deed permitting honorarium/salary to trustees does not violate section 13(3) and render the trust ineligible for registration. The tribunal distinguished between prohibited benefits and legitimate salary payments to trustees as employees under employment contracts. It ruled that salary payments are contractual obligations, not benefits, and section 13(3) cannot be invoked solely based on deed provisions without actual improper payments. The CIT(E) Kochi's rejection order was set aside. en-us Thu, 24 Apr 2025 00:00:00 +0530 Sat, 26 Apr 2025 08:30:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769535 ITAT Cochin allowed the appeal and directed registration u/s 12A to be granted to the trust. The court held that mere existence of a clause in trust deed permitting honorarium/salary to trustees does not violate section 13(3) and render the trust ineligible for registration. The tribunal distinguished between prohibited benefits and legitimate salary payments to trustees as employees under employment contracts. It ruled that salary payments are contractual obligations, not benefits, and section 13(3) cannot be invoked solely based on deed provisions without actual improper payments. The CIT(E) Kochi's rejection order was set aside. Case-Laws Income Tax Thu, 24 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769535