Charitable trust validity upheld where trustees have limited discretion over beneficiaries and timing of charitable application.

A charitable trust is not invalid merely because the trustees are left discretion to choose the specific charitable objects, institutions, time, or manner of application, so long as the deed clearly shows an intention to devote the property to charity. That discretion is confined to charitable application and does not permit indefinite withholding of income. Trustees remain bound to administer the trust reasonably, and the court may intervene if they fail to do so. On this reasoning, a deed without a named specific charity was not treated as illusory, the trust was regarded as valid charitable, and the income from the settled shares was treated as exempt from income-tax.

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Issues: Whether the trust deed created a valid charitable trust and whether the income derived from the settled shares was exempt from income-tax.

Analysis: A charitable trust is not invalid merely because the trustees are given discretion to select the particular charitable purposes or institutions to be benefited, so long as the intention to devote the property to charity is clear. A direction to apply income for charitable purposes at such times and in such manner as the trustees determine does not confer an unfettered power to withhold application of the income indefinitely. The trustees are bound to administer the trust reasonably, and if they fail to do so, the court may intervene and frame a scheme or otherwise ensure administration. The deed therefore could not be treated as creating only a pretended or illusory trust on the ground that no specific charity was named or that application of income was left to the trustees' discretion.

Conclusion: The trust was held to be a valid charitable trust, and the income from the settled shares was held to be exempt from tax.

Final Conclusion: The reference was answered in the affirmative and the assessee succeeded on the question referred.

Ratio Decidendi: A trust for charity is valid if the intention to benefit charity is clear, even where trustees are left to choose the specific charitable objects and the time or manner of application, provided the discretion is limited to charitable application and remains subject to judicial control against non-administration.

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