https://www.taxtmi.com/caselaws?id=5050 The first proviso to section 16(1)(c) of the Indian Income-tax Act, 1922 applies only where the trust deed lawfully reserves to the settlor a power to retransfer income or assets, or to reassume control over them. A mere power to issue directions within the trust framework, including directions for application of funds to charitable objects, is not enough. Powers that could be exercised only by breaching the trust deed or ignoring statutory restrictions do not amount to a legally enforceable right to reassume power. On that basis, the proviso was not attracted and the trust income was not assessable in the settlor's hands. en-us Fri, 05 May 1967 00:00:00 +0530 Tue, 18 Nov 2008 00:00:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5050 The first proviso to section 16(1)(c) of the Indian Income-tax Act, 1922 applies only where the trust deed lawfully reserves to the settlor a power to retransfer income or assets, or to reassume control over them. A mere power to issue directions within the trust framework, including directions for application of funds to charitable objects, is not enough. Powers that could be exercised only by breaching the trust deed or ignoring statutory restrictions do not amount to a legally enforceable right to reassume power. On that basis, the proviso was not attracted and the trust income was not assessable in the settlor's hands. Case-Laws Income Tax Fri, 05 May 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5050