Trust income for one identifiable beneficiary is taxed under the main rule, not the maximum-rate proviso.

Trust income receivable by trustees on behalf of one identifiable beneficiary falls outside the proviso for income not specifically receivable on behalf of any one person or for indeterminate shares. The trust deeds showed dedication of the properties to the deity, and the trustees were not beneficial owners; the reference to trustees as beneficiaries was treated as a misdescription. On that footing, the deity was treated as the single beneficiary, so the first proviso to section 41(1) of the Indian Income-tax Act, 1922 did not apply and assessment had to proceed under the main provision, not at the maximum rate.

---

---

Issues: Whether the income of the trust was assessable at the maximum rate under the first proviso to section 41(1) of the Indian Income-tax Act, 1922, or fell within the main provision because it was receivable by the trustees on behalf of a single beneficiary.

Analysis: The trust deeds showed that the properties were dedicated for the deity and that the trustees were not beneficial owners of the income. The reference to the trustees as beneficiaries in one deed was treated as a misdescription. On that basis, the income was receivable on behalf of one person, namely the deity, and did not present a case where the income was not specifically receivable on behalf of any one person or where the shares of beneficiaries were indeterminate or unknown. The first proviso to section 41(1) therefore had no application. The Court also proceeded on the footing that the deity could be treated as a person for this purpose.

Conclusion: The first proviso to section 41(1) was inapplicable and the income was assessable under the main provision, not at the maximum rate.

Final Conclusion: The trust income remained chargeable in the hands of the trustees as income receivable on behalf of a single beneficiary, so the Revenue's assessment at the maximum rate could not be sustained.

Ratio Decidendi: Where trust income is specifically receivable by trustees on behalf of one identifiable beneficiary, the proviso for indeterminate or unknown shares does not apply and assessment must be made under the main charging rule.

---