https://www.taxtmi.com/caselaws?id=38227 A trust deed is not revocable under the first proviso to section 16(1)(c) of the Indian Income-tax Act, 1922 merely because it authorises investment of trust funds by way of deposits or loans with firms or persons connected with the settlor. The decisive test is whether the settlor retained, or could reassume, power over the income or assets as an absolute owner. Because such investment power remained confined to trustees under the trust and trust law, the proviso did not apply, and inclusion of the trust income in the settlor's assessment was not justified. en-us Fri, 13 Jan 1978 00:00:00 +0530 Mon, 05 Apr 2010 11:03:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38227 A trust deed is not revocable under the first proviso to section 16(1)(c) of the Indian Income-tax Act, 1922 merely because it authorises investment of trust funds by way of deposits or loans with firms or persons connected with the settlor. The decisive test is whether the settlor retained, or could reassume, power over the income or assets as an absolute owner. Because such investment power remained confined to trustees under the trust and trust law, the proviso did not apply, and inclusion of the trust income in the settlor's assessment was not justified. Case-Laws Income Tax Fri, 13 Jan 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38227