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1964 (4) TMI 13 - SC - Income TaxWhether the 60% of the income from the trust properties is exempt from assessment to income-tax under section 4(3)(i) of the Act? Held that:- The said sub-section says that the incomes mentioned thereunder shall not be included in the total income, but the proviso lifts the ban and says that such incomes shall be included in the total income if the conditions laid down are satisfied. We think that the expression " such income " only means the income accruing or arising in favour of the trust. The legal position may briefly be stated thus. Clause (i) of section 4(3) of the Act takes in every property or a fractional part of it held in trust wholly for religious or charitable purposes. It also takes in such property held only in part for such purposes. Business is also property within the meaning of the said clause. Clause (b) of the proviso to section 4(3)(i) applies only to a business not held in trust but carried on on behalf of religious or charitable institutions. Appeal dismissed.
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