The question that arises in this reference is whether an income arising from a certain trust is exempt from tax on the ground that it falls within S. 4 (3) (i) of the Indian Income-tax Act. The trust in question was constituted on the Diamond Jubilee of Mr. Walchand Hirachand, a well-known industrialist of Bombay, and the trust-deed which is dated 31st May, 1943 sets out the objects of the trust. The recitals clearly state how the trust came into existence and the origin of the trust was the celebration of the 61st Birthday of the Settlor and a committee of the employees of the Settlor present ed to him a sum of Rs. 4,11,111/- and the recital further points out that the Settlor was anxious to strengthen the hands of the organisation which con trolled the various companies in which the Settlor had an interest and. therefore, he thought it necessary to maintain a uniform control over the management and working of the Premier Construction Co., Ltd., by centralising the voting power in the company in the hands of a certain definite body instead of having it spread over in individuals or small groups. Then we have the operative clause which provides that the trust fund shall be invested

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