1926 (1) TMI 5

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.... Hindu joint family entered into a partition and agreed among themselves that ₹ 15,000 of the family property should be set aside for a trust purpose, which purpose was to establish a Thevara Patasala, that is, a school for teaching Hindus Tamil hymns, and that the income from the balance of the amount after erecting a building was to be used for the upkeep and carrying on of the school.The ....

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....e clear to our minds that if they are the profits of a business they cannot at the same time be income derived from property held under trust wholly for religious or charitable purposes. The question was at first sight a little complicated by the fact which appears on the face of the document that this was a forbidden investment and that to put the money into this rice mill was a clear breach of t....

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....ate surplus of the profits is all going to the charitable object. In our opinion, that is clearly laid down in the Rotunda Hospital case [Common v. Governors of the Rotunda Hospital, Dublin (1921) 1 A.C. 1.] which has been followed in the subsequent cases, and only the other day in In the matter of Lachman Das Narain Das I.L.R. (1924) A. 68 We think that that principle applies quite clearly to the....