https://www.taxtmi.com/caselaws?id=178198 Exemption under section 4(3)(i) of the Indian Income-tax Act, 1922 requires property to be held under trust or other legal obligation wholly for religious or charitable purposes; a mere arrangement to apply part of future business income to charity is insufficient, so the exemption fails where no business property is effectively transferred to trustees. Section 16(1)(c) applies where income arises from assets that remain the settlors' property, including revocable or ineffective settlements lacking real transfer of the underlying assets, and the resulting income is assessable in the settlors' hands. The commentary therefore treats the business income as taxable in the hands of the settlors. en-us Thu, 25 Jan 1962 00:00:00 +0530 Fri, 29 Jan 2016 18:20:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=178198 Exemption under section 4(3)(i) of the Indian Income-tax Act, 1922 requires property to be held under trust or other legal obligation wholly for religious or charitable purposes; a mere arrangement to apply part of future business income to charity is insufficient, so the exemption fails where no business property is effectively transferred to trustees. Section 16(1)(c) applies where income arises from assets that remain the settlors' property, including revocable or ineffective settlements lacking real transfer of the underlying assets, and the resulting income is assessable in the settlors' hands. The commentary therefore treats the business income as taxable in the hands of the settlors. Case-Laws Income Tax Thu, 25 Jan 1962 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=178198