THE TRUSTEES OF THE CHARITY FUND,ESPLANADE ROAD, FORT, BOM vs THE COMMISSIONER OF INCOME-TAX,BOMBAY

The Supreme Court ruled that the income from the Charity Fund established by Sir Sassoon David is exempt from taxation under Section 4(3)(i) of the Indian Income-tax Act, 1922. The Court held that the primary purposes of the trust, including relief for the poor and support for educational institutions, involve an element of public utility, thus constituting a valid charitable trust. The preference given to family members in the distribution of benefits does not invalidate the charitable nature of the trust.