https://www.taxtmi.com/caselaws?id=27512 A trust is not treated as revocable merely because the settlor may direct income only to the trust's stated religious or charitable purposes; a right to apply income within those purposes is not a right to reassume the assets or income, so the Pilgrimage Money Trust income was not taxable in the settlor's hands. The Princess Niloufer Trust arrangement also protected the interest on the deposit from tax because the agreement expressly made it tax-free for the assignee-beneficiary, and the validating statute gave the trust deed overriding effect notwithstanding inconsistent income-tax law. On that basis, both sums were outside tax liability. en-us Tue, 30 Jan 1973 00:00:00 +0530 Sat, 13 Feb 2010 13:01:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=27512 A trust is not treated as revocable merely because the settlor may direct income only to the trust's stated religious or charitable purposes; a right to apply income within those purposes is not a right to reassume the assets or income, so the Pilgrimage Money Trust income was not taxable in the settlor's hands. The Princess Niloufer Trust arrangement also protected the interest on the deposit from tax because the agreement expressly made it tax-free for the assignee-beneficiary, and the validating statute gave the trust deed overriding effect notwithstanding inconsistent income-tax law. On that basis, both sums were outside tax liability. Case-Laws Income Tax Tue, 30 Jan 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=27512