Meaning of “Indirectly”

Case Name : CIT  Vs. S. Raghbir Singh

Citation :[1965] 57 ITR 408 (SC)

Court : Supreme Court

Section : 60 TO 63

Meaning : The expression ‘indirectly’ in first proviso to section 16(1)(c) of the 1922 act [corresponding to section 63(a) of the 1961 act] does not seek cases where the settlor was under the guise of a trust seeking to discharge his own liability. The proviso contemplates cases in which there is a provision for retransfer of the income or assets and such provision is for retransfer directly or indirectly. It also contemplates cases where there is a provision which confers a right upon the settlor to reassume power over the income or assets directly or indirectly. It is the provision for retransfer directly or indirectly of income or assets or for resumption of power directly or indirectly over income or assets which brings the case within the first proviso. Cases in which there is a settlement, but there is no provision in the settlement for retransfer or right to reassume power do not fall within the proviso even if as a result of the settlement, the settlor obtains a benefit.