Trust making reasonable payment for services rendered to specified person u/s. 13(3) justifiable

Commissioner of Income Tax Exemption Delhi Vs Iilm Fondation (Delhi High Court) Delhi High Court held that reasonable payment for services rendered to persons specified u/s. 13(3) of the Income Tax Act by the trust is justifiable and such payment wouldn’t fall within the exception of section 13(1)(c) of the Income Tax Act. Facts- The assessee is a trust engaged in activities of imparting education. During the financial year relevant to AY 2009-10, the Assessee had paid a salary of ₹16,20,000/- to Ms. Malvika Rai, who was the Chairperson of the Assessee trust. The AO held that the same was ...