COMMISSIONER OF INCOME TAX, (CENTRAL) DELHI,NEW DELHI vs BIJLI COTTON MILLS (P) LTD., HATHRAS., ALIGARH

The Supreme Court held that amounts collected under the head 'Dharmada' by the assessee were not to be considered as income chargeable to income tax under Section 4(3)(i) and Section 10(1) of the Indian Income Tax Act, 1922. The Court ruled that these amounts were earmarked for charitable purposes and thus did not constitute trade receipts. Furthermore, the Court found that the trust created for 'Dharmada' was not void due to vagueness, as the payments were validly earmarked for charitable purposes from the outset.