https://www.taxtmi.com/caselaws?id=191003 A charitable trust requires a binding declaration, ascertainment and separation of definite property, and divestment of the settlor's beneficial ownership. Although the declaration of trust was accepted, the alleged setting apart of Rs. 2,00,000 was supported only by book entries and not by proof that the amount was actually available or clearly appropriated as a trust fund. On that footing, no valid trust was created and the trustees did not become creditors of the assessee. The claimed interest deduction also failed because there was no enforceable debt in favour of the trustees, so the assessee could not deduct the amount as interest under the income-tax law. en-us Tue, 02 Apr 1946 00:00:00 +0530 Thu, 16 Mar 2017 18:11:13 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=191003 A charitable trust requires a binding declaration, ascertainment and separation of definite property, and divestment of the settlor's beneficial ownership. Although the declaration of trust was accepted, the alleged setting apart of Rs. 2,00,000 was supported only by book entries and not by proof that the amount was actually available or clearly appropriated as a trust fund. On that footing, no valid trust was created and the trustees did not become creditors of the assessee. The claimed interest deduction also failed because there was no enforceable debt in favour of the trustees, so the assessee could not deduct the amount as interest under the income-tax law. Case-Laws Income Tax Tue, 02 Apr 1946 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=191003