COMMISSIONER OF INCOME TAX Vs. DESHPANDE D D

JUDGEMENT

(1.) AT the instance of the Revenue the following question has been referred for our determination:

(2.) THE question relates to the asstt. year 1960 61 for which the corresponding previous year is the financial year 1959 60. The assessee settled on trust certain properties by an indenture of trust dt. 24th Dec., 1947. The supreme object of the trust was to effect revival by spreading and giving currency to the Karma Marg mingled with Bhakti as substantiated by Shri Dnyaneshwar Maharaj and to the Tatwadnyan as expounded in Dnyaneshwari with the intention of annihilating the decline that had set in religion. The trust was to establish at the holy place of Alandi the institution of Shri Dnyaneshwar Vidyapeeth and propaganda centres in Maharashtra, the whole of India and, if necessary, in foreign countries to accomplish its objects. The particulars of this charitable trust are specially to be found in cl. 6 of the indenture of trust. With a view to carry out the objects of the trust, authority was given for framing necessary rules. The management of the trust is provided in a detailed manner and the settlor is to be a trustee for his lifetime. Reliance, however, is placed by Mr. Joshi upon a clause which appears a little later, where it is stated ''..it is the desire of the original founder and trustee Ra. Ra. D. D. Deshpande that his sons or daughters or the male or female descen dants of those sons or those daughters, should they or their grandsons be in poverty may, for obtaining proper and necessary education or for their maintenance and protection being continued well and steadily through this Trust Fund, through Vidyapeeth (university) or through industries and business connected with the Trust Fund, be given in financial aid'' in any of the modes prescribed therein.

(3.) MR . Joshi, on behalf of the Revenue, has contended that since it is possible for the trust fund to give help to poor members of the family of the settlor in the manner indicated, the income of the trust cannot be regarded as exempt under S. 4(3)(i). He submitted that making of a provision for giving financial aid to the members of the family of the settlor will indicate that the income of the trust cannot be regarded as exempt under the said section