C.I.T. WEST BENGAL III, CALCUTTA vs SRI JAGANNATH JEE (THROUGH SHEBAITS)

The Supreme Court held that under Section 4(3)(i) of the Income Tax Act, 1922, income applied for charitable purposes is exempt from taxation. The Court found that the Will executed by Raja Rajendra Mullick Bahadur did not result in a complete dedication of property to the Deity, thus the income was not taxable in the hands of the Deity. The Court affirmed the High Court's decision that the beneficial interest did not vest in the Deity, allowing the appeal and ruling that only specific expenses related to the Deity's worship were taxable.