https://www.taxtmi.com/caselaws?id=276604 Dividend income from shares settled on an irrevocable trust was not taxable in the settlor's hands under section 16(1)(c) of the Income-tax Act, 1922. The provision deems income from a revocable transfer to be the transferor's income only where the deed provides for retransfer of income or assets to the transferor, or reserves a right to reassume control over them. Mere indirect benefit to the settlor is insufficient. On the stated facts, the assessee had divested himself of the shares, retained no power to revoke the settlement, and had no right to control or reclaim the income or assets; the trust's application of income to debt discharge and other objects did not alter that position. en-us Thu, 22 Sep 1960 00:00:00 +0530 Wed, 14 Nov 2018 15:53:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276604 Dividend income from shares settled on an irrevocable trust was not taxable in the settlor's hands under section 16(1)(c) of the Income-tax Act, 1922. The provision deems income from a revocable transfer to be the transferor's income only where the deed provides for retransfer of income or assets to the transferor, or reserves a right to reassume control over them. Mere indirect benefit to the settlor is insufficient. On the stated facts, the assessee had divested himself of the shares, retained no power to revoke the settlement, and had no right to control or reclaim the income or assets; the trust's application of income to debt discharge and other objects did not alter that position. Case-Laws Income Tax Thu, 22 Sep 1960 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276604