https://www.taxtmi.com/caselaws?id=290595 A valid charitable trust may still be liable to income tax on profits generated through a business carried on by its trustees. Where trust property is dedicated to charity but the trustees, instead of following the prescribed investment direction, run a rice mill to raise funds, the receipts retain the character of business income rather than exempt trust income. Breach of trust in the mode of investment does not change the tax character of the proceeds. Accordingly, income from the rice mill was assessable to tax even though the ultimate surplus was intended for charitable purposes. en-us Mon, 11 Jan 1926 00:00:00 +0530 Tue, 06 Oct 2020 14:35:42 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=290595 A valid charitable trust may still be liable to income tax on profits generated through a business carried on by its trustees. Where trust property is dedicated to charity but the trustees, instead of following the prescribed investment direction, run a rice mill to raise funds, the receipts retain the character of business income rather than exempt trust income. Breach of trust in the mode of investment does not change the tax character of the proceeds. Accordingly, income from the rice mill was assessable to tax even though the ultimate surplus was intended for charitable purposes. Case-Laws Income Tax Mon, 11 Jan 1926 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=290595