Charitable trust exemption denied for university appointment salary treated as personal income when received.

Remuneration received from university appointments was treated as the assessee's personal income because the salary remained salary when received, even though it was promised for charitable university purposes and later paid into a separate account. The commentary explains that, at most, the arrangement amounted to an executory charitable trust, but the exemption for income from property held under trust or other legal obligation for charitable purposes did not extend to a future salary. As the remuneration was not itself property held on trust, the charitable exemption failed and the amount was taxable as personal income.

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Issues: Whether the remuneration received for the university appointments was includible in the assessee's personal income or was exempt as income of property held under trust for charitable purposes.

Analysis: The appointments were accepted on the footing that the salary would be devoted to specified university purposes, and a draft trust deed was prepared. The arrangement was treated as creating, at most, an executory charitable trust. Even so, the exemption under section 4(3)(1) applied only to income derived from property held under trust or other legal obligation wholly for religious or charitable purposes. A future salary was not property of that kind, and the money remained the assessee's salary when received. The fact that it was later paid into a separate account for charitable objects did not alter its character as personal income. The deduction claimed under the charitable exemption therefore failed.

Conclusion: The remuneration was taxable as the assessee's personal income and was not exempt under the charitable trust provision.

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