Validly created trusts remain assessable on their real existence, and a Charity Commissioner's certificate does not bind tax authorities.

A trust validly created under the Indian Trusts Act, 1882, continues to exist unless extinguished in law, and its existence cannot be negated merely because the assessee acted inconsistently. The Income-tax Officer may independently examine whether the trusts were real for assessment purposes, as a Charity Commissioner's certificate does not conclusively bind the taxing authority or bar its statutory jurisdiction. On these principles, the schools' income could not be treated as the assessee's income because the trusts were found to be real and subsisting.

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Issues: Whether the income from the schools could be assessed in the hands of the assessee by treating the trusts as unreal or non-existent, and whether the Charity Commissioner's certificate prevented the income-tax authority from examining the existence of the trusts.

Analysis: The trust deed was executed and the essential requirements for creation of a trust were satisfied under the Indian Trusts Act, 1882. A trust, once validly created, continues unless it is extinguished in the manner provided by law. The certificate or order of the Charity Commissioner could not bar the Income-tax Officer from independently examining whether the trusts existed for assessment purposes, because the income-tax authority has exclusive jurisdiction to determine taxable income and the doctrine of judgment in rem could not be extended to control that statutory function. The assessee's inconsistent conduct did not by itself destroy the legal existence of the trusts.

Conclusion: The trusts were held to be real and subsisting, and the income from the schools could not be treated as the assessee's income.

Ratio Decidendi: A validly created trust, satisfying the statutory requirements of creation and not extinguished in law, cannot be disregarded for income-tax assessment merely on the basis of the assessee's conduct or by treating a Charity Commissioner's certificate as conclusive against the taxing authority's independent jurisdiction.

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