https://www.taxtmi.com/caselaws?id=56225 A trustee must act strictly within the trust deed: where the instrument requires the whole corpus to be dealt with in a prescribed manner, a partial distribution on restrictive terms is beyond authority and inconsistent with the Indian Trusts Act. The text also explains that, for tax purposes, the label used by the parties is not decisive; if individuals voluntarily combine to hold and enjoy property and derive income jointly, they may be treated as an association of persons. On this analysis, the income remains assessable in the hands of the trust when the corpus transfer is invalid, and the recipients may be taxed at the maximum marginal rate where the statutory conditions for AOP treatment are met. en-us Thu, 31 Oct 2002 00:00:00 +0530 Thu, 02 Dec 2010 14:34:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=56225 A trustee must act strictly within the trust deed: where the instrument requires the whole corpus to be dealt with in a prescribed manner, a partial distribution on restrictive terms is beyond authority and inconsistent with the Indian Trusts Act. The text also explains that, for tax purposes, the label used by the parties is not decisive; if individuals voluntarily combine to hold and enjoy property and derive income jointly, they may be treated as an association of persons. On this analysis, the income remains assessable in the hands of the trust when the corpus transfer is invalid, and the recipients may be taxed at the maximum marginal rate where the statutory conditions for AOP treatment are met. Case-Laws Income Tax Thu, 31 Oct 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=56225