Payment of professional fee to trustees who are doctors allowable

Parkar Medical Foundation Vs ACIT (ITAT Pune) Conclusion: Professional fee paid to the trustees, who were qualified doctors were allowable as deduction as it could not be held to be for the direct or indirect benefit of trustees. Held: Assessee was running hospital for charitable purpose. AO noted that the trust deed had only two trustees. Since it was not possible for assessee to start the hospital activity because of lack of funds, trustee allowed the carrying on of hospital activity in the hospital building owned by them and also allowed the entire medical infrastructure including availabl...