https://www.taxtmi.com/caselaws?id=276617 Proviso 1 to section 16(1)(c) of the Income-tax Act, 1922 applies only where the trust deed itself confers a legal right to retransfer income or assets, or to reassume power over them. A mere practical ability to influence trust affairs, or a power that could be exercised only through breach of trust or in violation of the Bombay Public Trust Act, 1950, is insufficient. The investment and management clauses did not create such a right, and a loan did not amount to dominion over trust property. The proviso was therefore not attracted, and the trust income was not assessable in the settlor's hands. en-us Thu, 05 Sep 1963 00:00:00 +0530 Wed, 14 Nov 2018 17:17:47 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=276617 Proviso 1 to section 16(1)(c) of the Income-tax Act, 1922 applies only where the trust deed itself confers a legal right to retransfer income or assets, or to reassume power over them. A mere practical ability to influence trust affairs, or a power that could be exercised only through breach of trust or in violation of the Bombay Public Trust Act, 1950, is insufficient. The investment and management clauses did not create such a right, and a loan did not amount to dominion over trust property. The proviso was therefore not attracted, and the trust income was not assessable in the settlor's hands. Case-Laws Income Tax Thu, 05 Sep 1963 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=276617