Payment to Trustees Alone Doesn’t Violate Section 13(1)(c): ITAT Bangalore

Bantval Sulochana Madhava Shenoi Trust Vs CIT (Exemptions) (ITAT Bangalore) Bengaluru ITAT: Payment to Trustees Does Not Automatically Violate Section 13(1)(c); Reasonableness Must Be Examined The Bengaluru ITAT held that payment of remuneration or honorarium to trustees is not, by itself, a violation of section 13(1)(c). The real issue is whether the remuneration paid to specified persons is excessive or unreasonable having regard to the services actually rendered. In this case, a charitable trust running Kamakshi Hospital, Mysuru, paid ₹20.50 lakh as honorarium to its Managing Trustee, Jo...