The assessee, an advocate, accepted a case on condition that the clients would provide him with Rs. 40,000 for charitable purposes and that he would create a public charitable trust with the money. The clients gave the assessee Rs. 32,500 and he created a trust therewith. The assessee claimed that the said amount of Rs. 32,500 was not his professional income as the amount had been given to him in trust for charity.
Held, that the said amount was the professional income of the assessee and was liable to income-tax. At the time when this money was paid to the assessee no trust or obligation in the nature of trust was created. The clients who paid the money did not create any trust nor imposed any legally enforceable obligation on the assessee. The money when it was received by the assessee was his professional income though he had expressed a desire earlier to create a charitable trust out of the money when received. The assessee's own voluntary desire to create a trust out of the fees paid to him did not create a trust or a legally enforceable obligation.
"The clients who paid the money did not create any trust nor imposed any legally enforceable obligation on the assessee."
i am unable to undersand the above sentance please explain with example
thanking you
