- (1.) In this matter the Income-tax Appellate Tribunal, Calcutta Bench, has referred to the Court this question : Whether the income derived by the applicant from the property held by the applicant under the Trust Deed of the 18th August, 1937, and the supplemental Trust Deed of the 30the October, 1939, is exempt from taxation by reason of Section 4 (3) (i) of the Income-tax Act
(2.) The applicant is the Mercantile Bank of India (Agency), Limited, which is the trustee of the Sir David Yule Trust Fund. The respondent is the Commissioner of Income-tax, Bengal.
(3.) The late David Yule was a man of very great business interests in Bengal for many year, and amongst the positions he occupied was Chairman of the Andrew Yule Co., Ltd., a company which managed and controlled many subsidiary concerns. During his lifetime he founded the Calcutta Discount Company, Ltd, He died on 3rd July, 1928, leaving surviving him his widow, Dame Annie Henriett Yule, and his only child Miss Gladys Meryl Yule. Lady Yule and Miss Yule were interested in perpetuating the memory of the late Sir David by creating a fund called the Sir David Yule Fund for the benefit of persons who had been and are connected with Andrew Yule Com., Ltd., and its subsidiary concerns, and for that purpose they transferred to the Calcutta Discount Company, Limited, a sum of rupees five lacs which was to form the fund.;