Charitable trust validity and income tax exemption upheld where trustees' discretion stayed within a defined charitable field

A trust deed is not void for uncertainty merely because trustees are given discretion to choose among religious or charitable objects of a public nature. Where the deed confines the income to such defined charitable purposes, the trustees' choice remains within a valid charitable field, and any excess would amount to breach of trust rather than invalidity of the trust itself. On that basis, the property was held under trust wholly for religious or charitable purposes, so the income qualified for exemption under the Income-tax Act and the assessee's claim was accepted.

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Issues: Whether the trust deed was void for uncertainty or ambiguity so as to deny exemption of the trust income from taxation under the Income-tax Act.

Analysis: The income was directed to be applied for religious and charitable purposes of a public nature. The deed listed several objects, most of which were admittedly charitable, and the trustees' discretion extended only to selecting among religious or charitable objects of public nature. A trust is not invalid merely because the trustees are given some choice within a defined charitable field. If the trustees exceed that field, they commit breach of trust, but the trust itself is not thereby void. The statutory exemption covered income from property held under trust wholly for religious or charitable purposes, and the objects in the deed fell within that description.

Conclusion: The trust deed was not void for uncertainty or ambiguity, and the trust income was entitled to exemption in law.

Final Conclusion: The reference was answered in favour of the assessee, affirming the validity of the charitable trust and its entitlement to the tax exemption claimed.

Ratio Decidendi: A trust is valid where its income is confined to religious or charitable purposes of a public nature, even if the trustees are given discretion to choose among such objects, provided the discretion does not extend beyond the charitable field.

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