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 - Settlor executed trust deed in respect of certain sum to be held by trustees for religious and charitable purposes - It was directed in trust deed that after setting apart certain sums by way of expenses balance of income from trust properties was to be utilised for all or any of charitable purposes mentioned therein - Said deed also contained a proviso to effect that in carrying out charitable intentions trustees would always prefer members of settlor's caste to members of any other caste in Hindu community and would further prefer members of Settlor's family and his relatives to those who were not such members or relatives - Whether proviso only required trustees, in utilising funds for charitable purposes to prefer certain beneficiaries (application of funds to whom being also for a charitable purpose) on ground that they belonged to community of settlor and in particular because they were members of family or relatives of settlor and it could not be said that by reason of that proviso dominant charitable intention expressed by settlor was affected - Held, yes - Whether, therefore, property of trust was held wholly for religious or charitable purposes and its income was liable to be exempt under section 4(3)(i) of 1922 Act - Held, yes FACTS The settlor executed a deed of trust in respect of a sum to be held by the trustees for purposes which were religious or charitable in character. By clause 1(d) of the deed of trust it was directed that after setting apart certain sums by way of depreciation and other expenses the balance of the income, interest, dividends, rents and profits of the trust properties was to be utilised for all or any one or more of the charitable purposes, mentioned therein in such shares and proportions and in such manner in every respect as the trustees would, in their absolute and unfettered discretion, think fit. The trust deed also contained a proviso to the effect that in carrying out the charitable intentions mentioned therein the trustees would…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492