https://www.taxtmi.com/caselaws?id=35785 A non-testamentary trust created before 1 March 1970 for relatives with independent income did not qualify under clause (iii) of the proviso to section 164(1) of the Income-tax Act, 1961. The expression "mainly dependent" must be assessed from all surrounding circumstances at the date of creation, including the beneficiaries' financial position. A mere legal obligation on the settlors to maintain relatives was insufficient where the beneficiaries could maintain themselves from their own income. The proviso applied only where the trust was bona fide and exclusively for relatives mainly dependent on the settlor for support and maintenance, which was not satisfied on these facts. en-us Tue, 14 Jul 1981 00:00:00 +0530 Tue, 16 Mar 2010 16:07:14 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=35785 A non-testamentary trust created before 1 March 1970 for relatives with independent income did not qualify under clause (iii) of the proviso to section 164(1) of the Income-tax Act, 1961. The expression "mainly dependent" must be assessed from all surrounding circumstances at the date of creation, including the beneficiaries' financial position. A mere legal obligation on the settlors to maintain relatives was insufficient where the beneficiaries could maintain themselves from their own income. The proviso applied only where the trust was bona fide and exclusively for relatives mainly dependent on the settlor for support and maintenance, which was not satisfied on these facts. Case-Laws Income Tax Tue, 14 Jul 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=35785