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1965 (10) TMI 22 - SC - Income TaxWhether the income arising from property settled upon trust under the deed of settlement, dated September 14, 1950, or any part thereof is exempt from tax under section 4(3)(i) of the Indian Income-tax Act, 1922 ? Held that:- Clause 3(d)(v) of the trust deed on which reliance is placed is only an expression of desire on the part of the settlor that the income of the trust should be spent equally on the four religious and charitable purposes mentioned in the deed. The said desire does not amount to setting apart by the trustees of the whole or a part of the income from the trust for purposes within the taxable territories. Indeed, clause 3(d) of the trust deed indicates the trustees have no power to set apart or accumulate the income for any of the purposes mentioned in the trust deed till after the death of the settlor. We cannot, therefore, hold on the material placed before us that the trustees have set apart the accumulated income for purposes within the taxable territories. Appeal dismissed.
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