TMI BlogAssessment in cases of diversion of property, or of income from property, held under trust for public charitable or religious purposesX X X X Extracts X X X X X X X X Extracts X X X X ..... lause (iia) of clause (24) of section 2 of the Income-tax Act] is used or applied, directly or indirectly, for the benefit of 4 [any person referred to in sub-section (3) of section 13 of the Income-tax Act], or (ii) any part of the income of the trust [whether derived from such property or from voluntary contributions referred to in sub-clause (iia) of clause (24) of section 2 of the Income-tax Act], being a trust created on or after the 1st day of April, 1962, ensures, directly or indirectly, for the benefit of 5 [any person referred to in sub-section (3) of section 13 of the said Act, or] 6 [(iii) any funds of the trust are invested or deposited, or any shares in a company are held by the trust, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... contained in the proviso to clause (21) of section 10 of the Income-tax Act" had been substituted ; and (2) for the words "at the maximum marginal rate", the words and figures "at the rates specified in 13 [sub-section (2) of section 3]" had been substituted ;] (b) in the case of any institution, fund or trust referred to in clause (22) or clause (22A) or clause (23B) or clause (23C) of section 10 of the Income-tax Act, the provisions of 14 [clauses (i) to (iii)] shall not apply.] Explanation . For the purposes of this section, 15 [(a) any part of the property or income of a trust shall be deemed to have been used or applied for the benefit of any person referred to in sub-sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rectly or indirectly, for the benefit of any person referred to in sub-section (3) of section 13 of the Income-tax Act, wealth-tax shall be leviable upon and recoverable from the trustee or manager (by whatever name called) in the like manner and to the same extent as if the property were held by an individual who is a citizen of India and resident in India for the purposes of this Act, and ( a ) at the rates specified in Part I of Schedule I in the case of an individual ; or ( b ) at the rate of one-half per cent, whichever course is more beneficial to the revenue ;" 4. Restored to the original expression by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. This expression was earlier substituted by the Direct Tax Laws ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 5 shall not be denied in relation to any property other than such investment, by reason only that the funds of the trust have been invested in a concern in which any person referred to in the aforesaid sub-section (3) has such substantial interest:" 10. Inserted by the Finance Act, 1984, w.e.f. 1-4-1985. 11. Substituted vide the Finance Act, 1992, w.e.f. 1-4-1993."also" 12. Restored to their original provision by the Direct Tax Laws (Amendment) Act, 1989, w.e.f. 1-4-1989. Earlier, the same was substituted by the Direct Tax Laws (Amendment) Act, 1987, with effect from the same date. 13. Substituted vide the Finance Act, 1992, w.e.f. 1-4-1993. Before it was read as:- "Part I of Schedule I in the case of an individual" ..... X X X X Extracts X X X X X X X X Extracts X X X X
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