COMMISSIONER OF INCOME TAX Vs. TRUSTEES OF SIR KIKABHAI PREMCHAND TRUST

JUDGEMENT

(1.) THE following question has been referred for our decision :

(2.) THE brief facts upon which the question has been referred are as follows :

(3.) ON 24th October, 1944, the late Sir Kikabhai Premchand, the settlor, executed a trust deed in respect of 300 shares of the Bank of India Ltd. and 100 shares of the Bombay Life Insurance Co. Ltd. The provisions of the trust deed were that the income from the trust property was to belong to Sir Kikabhai Premchand during his lifetime. On his death the income was to go to Lady Kikabhai Premchand if she survived him. By clause 1 (b) of the trust deed, Lady Kikabhai Premchand was entitled to the net income "during her lifetime without power of anticipation or alienation". After the death of the survivor of the settler and his wife, the net income was to go, after payment of certain remuneration to the trustees, to certain charitable trusts which the settlor had created previously for the maintenance of those trusts. It is unnecessary to mention the details of those charitable trusts, because it is not in dispute here that those trusts were charitable trusts which fell within the ambit of section 4 (3) (i) of the Indian Income-tax Act being wholly for religious or charitable purposes. If, after the utilisation of the income from the trust properties for the benefit of those specified charitable trusts, any income was available, it was to be utilised for the maintenance of any nursing home, hospital or any institution for medical relief.