Private religious trust income was held non-exempt where temple worship and offerings were confined to the settlor's objects, not the public.

Income from the trust, apart from the hospital and dispensary, was not exempt under section 4(3) because the dominant objects were private religious purposes: construction and maintenance of a temple, installation and worship of the settlor's own deity and religious preceptor, private ceremonies, and associated offerings. The public had no right of worship or access, and the food distribution was not for the public at large. The hospital and dispensary were separately public in character, and exemption was conceded only for that part. The trust was therefore treated as a private trust in relation to the temple-related objects, and the claim to exemption on the remaining income failed.

---

---

Issues: Whether the income from the trust, other than the portion referable to the hospital and dispensary, was exempt as property held wholly or in part for religious or charitable purposes under section 4(3) of the Indian Income-tax Act.

Analysis: The deed showed that the dominant objects, apart from the hospital and dispensary, were the construction and maintenance of a temple, the installation and worship of the settlor's own deity and religious preceptor, the celebration of private religious ceremonies, and the feeding and festival offerings attached to those observances. The public had no right to worship in the temple, no access right was conferred, and the food distribution was not directed to the public at large. The settlor retained substantial control during her lifetime, the arrangements for management remained tied to her wishes, and the deed did not use language indicating that the temple and associated religious observances were intended for public benefit. By contrast, the hospital and dispensary were expressly public in character, and that part alone was conceded to be exempt when applied to those objects.

Conclusion: The remaining income was not exempt. The trust, so far as it related to the temple and connected observances, was held to be a private trust and the question was answered against the assessee.

---