1988 (2) TMI 2

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..... ous Trusts Act, 1950 (hereinafter referred to as "the said Act") and the rules framed thereunder. The facts of the case lie in a very narrow compass. Respondent No. 2 is a trust within the meaning of the provision in the said Act and the Rules framed thereunder. It is admitted that one Shri Mishrilal Jain donated a sum of Rs. 2,50,000 to the appellant-trust. According to respondent No. 2, the said amount was donated with a specific direction that the said sum would form part of the corpus of the trust. By reason of an order dated September 17, 1979, the appellant-Board held that the aforementioned amount of Rs. 2,50,000 being income of the trust, has also to be taken into consideration for the purpose of assessment of respondent No. 2 .....

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..... State Board of Religious Trust Fund, the Bihar State Board of Swetambar Jain Religious Trust Fund and the Bihar State Board of Digambar Jain Religious Trust Fund, and there shall be placed to the credit of-... 69(iii) The Bihar State Board of Digambar Jain Religious Trust Fund (a) all sums received by the Bihar State Board of Digambar Jain Religious Trusts as donations and grants; (b) all sums received from trustees of Digambar Jain Religious Trusts as fines under section 67; (c) all sums received from trustees of Digambar Jain Religious Trusts as fees under section 70 ; (d) all receipts by the Bihar State Board of Digambar Jain Religious Trusts in respect of fees for inspection and supplying copies of any documents ; (e) all sum .....

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..... e Investments Ltd. [1970] AC 567; [1968] 3 All ER 651 (HL), wherein it has been held that, in respect of a 'trust', if a particular sum is to be utilised for a particular purpose, the sum cannot be utilised for any other purpose whatsoever. Evidently, therefore, the trustees were not empowered to treat the said sum in any manner other than for the purpose of corpus of the trust. The word "income" has been defined in section 2(24) of the Income-tax Act which reads as follows: "2(24). 'income' includes (i) profits and gains; (ii) dividend; (iia) voluntary contributions received by a trust created wholly or partly for charitable or religious purposes or by an institution established wholly or partly for such purposes, not being contributions .....

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