Trust cash payments in lieu of impracticable food supply were treated as representative obligation, not trustees' separate income.

Where trustees, with the beneficiaries' consent, substituted monthly cash payments for supplying food under a trust deed because the original mode of performance had become impracticable, the payments were treated as discharge of the trust obligation rather than the trustees' separate income. The trust duty to provide food remained operative, and the trustees could rely on the power to modify directions under the Indian Trusts Act to carry out the settlor's intention. Because the beneficiaries were identifiable and the amounts payable were certain, the case did not involve indeterminate or unknown beneficiaries. The trustees were therefore assessable only in a representative capacity, and the cash payments were not separately taxable as their income.

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Issues: Whether cash payments made by trustees to named beneficiaries in lieu of supplying food under the trust deed were liable to be assessed as income of the trustees for the relevant assessment years.

Analysis: The trust deed imposed a duty on the trustees to provide food to the beneficiaries through a palace kitchen. After the settlor's death, running the kitchen had become impracticable, and the trustees, with the beneficiaries' consent, substituted monthly cash payments to carry out the settlor's paramount intention of providing food. The trustees were therefore acting in discharge of their duty under the trust deed, read with the power to modify directions under section 11 of the Indian Trusts Act. The beneficiaries were identifiable and the amounts payable were certain, so the case did not fall within the provision dealing with indeterminate or unknown beneficiaries. The trustees were assessable only in a representative capacity under the relevant income-tax provisions.

Conclusion: The cash payments were not separately liable to be assessed as the trustees' income; the question was answered in favour of the assessee and against the Revenue.

Ratio Decidendi: Where trustees, with the consent of identifiable beneficiaries, substitute cash payments for an impracticable mode of performance of the trust obligation, the payments remain part of the trustees' representative obligation and are not taxable as the trustees' separate income if the beneficiaries and their entitlements are determinate.

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