Trusts

Such doctrine would apply in a case where original object of such trust could not be achieved, but an object as nearly as possible similar thereto could be achieved

Doctrine of cypres would not apply to save trust, when neither original object nor object similar thereto might be achieved

Principles.

Such private Trust was established for benefit of serving/retired personnel of Armed Forces of Pakistan and their families

Such objectives must be achieved through permissible means and not at the cost of State exchequer or public-at-large

State functionaries must act in furtherance of public interest.

Validity of endowment-Executant of trust divesting himself of property.

Responsibility of State in respect of trust properties-Accepted principles concerning trusts in England and Sub-continent.

Income-tax-Trust-Providing for aid to persons belonging to settlor's family -Income exclusively used for charitable purposes Income of trust-Whether exempt-Income-tax Act, 1922, S. 4(3) (i).

Trust-Net income to be applied for support and maintenance of assessee-Nature of assessee's interest-Interest not saleable in open market-Whether "asset"-Assessment of trustees where shares of beneficiaries are indeterminate-Reference-New question and new aspect of same question, difference

Power of High Court to consider new aspect of question referred

Wealth Tax Act, 1957, Ss. 3, 7(1) & 21(4).

S. 34-Accounts, entries in books of-Mere production of books of account-Does not prove each item of entry therein-Party relying upon entries to prove that they are factually correct.

Business transferred to trustee for benefit of assessee's sons-Beneficiaries and their shares specified in trust deed-Proper mode of assessment-Income must be divided according to the shares of the beneficiaries and separately assessed on trustee Assessment of entire income on trustee as individual illegal-Income-tax Act, 1922, Ss. 10(1) & 41.

Trusts Trust-Beneficiary entitled to income of half of trust property which included shares Liquidation of company-Amount received by trustees for shares Accumulation of profits of company for six years before liquidation-Assessment of beneficiary-Half of profits whether can be included-Will-Trust-Beneficiary entitled to income-Sale of shares forming part of investments

Surplus-Whether can be assessed as income of beneficiaryIncome-tax Act, 1922, Ss. 2(6A)(c) & 41(2).

Trusts Trust-Breaches of, however numerous or extending to long period-Cannot put end to trust.

Whether income of beneficiaries can be assessed separately-Indian Income-tax Act, 1922, S. 41 (1), first proviso-"On behalf of", meaning of.

Trusts Income-tax Act (XI of 1922), S. 4 (3) (i), proviso-Business itself, subject of trust-Proviso applicable-Business carried on "on behalf of" a religious or charitable "institution"-Requirement of "on behalf of" to be satisfied-"Institution" does not convey the sense necessarily of an "elaborate organization"-Property held in trust: two launches-Run by trustee himself who was engaged in the trade of plying launches for hire-Trust business, held, not one carried on "in the course of the carrying out of a religious or charitable purpose of the institution"-Requirement of "on behalf of" not established by assessee [S. A. Rahman, J. (contra)]-Trust not entitled to exemption-"Religious or charitable" purposes include "relief to the poor", "education", "medical facilities", etc.

Trusts -Property dedicated for religious or charitable purpose by registered deed, under Hindu law -Interpretation of deed "Terms" used not improper-Main purpose to be kept in view and intention to be gathered from document as a whole-Lessor (grantor) divesting himself of whole income but minor "fraction" termed as rent-Creation of trust to prevent Government from acquiring property -Allowable -East Bengal State Acquisition and Tenancy Act (XXVIII of 1951), Ss. 3 (1) (a) & b-A (1).

Personal and as trustee.

S. 33-Trust-Assessment for certain year objected to by assessee on ground that income was exempt from tax-High Court on reference deciding against assessee-Decision of High Court reversed by Privy Council Assessment for subsequent years made in accordance with decision of High Court-S. 33 does not confer general relief to assesssee Assessments not a nullity. [A I R 1944 Lah. 445 reversed.]