Law:

Section:

Section 11 of the Income-tax Act, 1961 [Corresponding to section 4(3)(i) of the Indian Income-tax Act, 1922] - Charitable or religious trust - Exemption of income from property held under - Assessment years 1956-57 and 1957-58 - Testator by Will dedicated as debutter his entire estate to his Maker and Thakoor obligating managers of debutter with responsibility to discharge certain secular but secondary behests - Various directions in will were mostly either religious or philanthropic but not so remote as to be incongruous with dedication to an idol or creation of a debutter - Will also provided for payment of certain fixed allowances to trustees, their widows, maintenance of horse drawn carriages and motor cars for use of trustees and their families, medical aids and expenses on account of sraddha ceremony of ancestors of trustees - Whether idol was legal owner of whole estate and was liable to be assessed as such - Held, yes - Whether since shebaits first got income from debutter properties and then applied it in conformity with directives given in Will, there was no diversion of income at source - Held, yes - Whether, however, all income earmarked for charitable purposes conforming to section 4(3)(i) read with section 4(3) of 1922 Act would not be included in total income of assessee - Held, yes FACTS The testator having enormous estates, lavish charity, and large family, executed his will by which, he dedicated and made debutter his estate in the name and for the worship of God. The will provided that after making such payments and deductions from the income of the debutter property the shebaits or the trustees were to pay there out the cost of performing the various worships, pujas and ceremonies specified in the will and such other additional acts of worship, puja, sraddhas and ceremonies as the shebaits and the trustees would think necessary, also the cost of feeding the poor. The Will also provided for payment of certain fixed allowances to the shebaits and the widows of the deceased shebaits, maintenance of horse drawn carriages and motor cars for the use of the shebaits, medical aids to the shebaits and their family members, expenses on account of…

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