H.E.H. NIZAM'S RELIGIOUS ENDOWMENT TRUSTHYDERABAD vs COMMISSIONER OF INCOME-TAX, ANDHRA PRADESH,HYDERABAD

The Supreme Court interpreted Section 4(3)(i) of the Indian Income-Tax Act, 1922, determining that income from a trust must be applied or set apart for religious or charitable purposes within taxable territories to qualify for exemption. The Court held that since the Trustees did not allocate the income for such purposes, the exemption could not be claimed. The appeal was dismissed, affirming the High Court's decision that the income was taxable.