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1978 (9) TMI 53 - SUPREME COURTWhether section 8(1) of the Orissa Agricultural Income-tax Act, 1947, suffers from the vice of discrimination and as such is hit by art. 14 of the Constitution ? Held that:- Even if the instrument of wakf is a composite one partly incorporating a public wakf and partly a private wakf that part which deals with public wakf will fall under s. 8(1) and the other part will be covered by s. 9, for, the language of s. 8(1) is wide enough to include such a deed to the extent that it incorporates a public wakf. In other words, Muslim trusts, i.e., wakfs other than wakf-alal-aulad, would be covered by s. 8(1) and to such wakfs the limited exemption contemplated by s. 8(1) would apply. If that be so, the gravamen of complaint that all wakfs (Muslim trusts) other than wakf-alal-aulad are receiving favourable treatment as against non-Muslim public charitable trusts must fall to the ground. As regards Muslim trusts which are in the nature of wakf-alal-aulad, which alone are covered by s. 9, the proviso clearly shows that the share of the beneficiary under such a trust, far from being exempted, is brought to tax and the tax is made realisable from the mutawalli and read with the proviso the main provision really confines the benefit of exemption only to ultimate illusory or remote, public charitable or religious purpose and is thus completely consistent with the object and scheme of the Act. In the result, we are clearly of the view that s. 8(1) of the Act is free from the vice of discrimination under art. 14 of the Constitution and the said provision is perfectly valid and constitutional. Appeal dismissed .
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