Mumbai Court November 1938 Judgments

Commissioner of Income-tax, Bombay Vs. Abubaker Abdul Rehman and Other ...

Court: Mumbai

Reported in: AIR1939Bom195; [1939]7ITR139(Bom)

BEAUMONT, C.J. - This is a reference made by the Commissioner of Income-tax under Section 66 sub-section (2) of the Indian Income-Tax Act, and the questions raised, like a good many other questions under this Act, is not free from difficulty. Shortly, the question whether income-tax should be assessed on the Mutavalees of a Wakf or whether the tax should be assessed on the beneficiaries of the Wakf deed. The deed of Wakf is dated the 18th July 1931 and by it certain immoveable properties were conveyed to the trustees, upon certain trusts, which, as amended by a later deed, are, stated shortly, to pay all charges for repairs, insurance and other outgoings of the income and then to pay 1/8th of the balance of the income to the settlors wife for life and other 7/8ths to the settlors children. The 1/8ths, after the death of the wife is to follow the other 7/8ths, and putting it quite generally and so far only as is material for the purpose of the present reference, the trust is to pay the ...