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1961 (8) TMI 5 - SC - Income TaxWhether, on the facts and circumstances of the case, the first proviso to section 41 is applicable ? Held that:- section 41(1) of the Act provides for a vicarious assessment in order to facilitate the levy and collection of income-tax from a trustee in respect of income of the beneficiaries. In express terms it equates the muthawalli of a wakf to a trustee. For the purpose of section 41 the muthawalli is treated as a trustee and, on the analogy of a trustee, he holds the property for the benefit of the beneficiaries. There is no scope for importing the Mahomedan law of wakf in section 41 when the section in express terms treats the muthawalli as a trustee, though he is not one in the technical sense under the Mahomedan law. If the argument of learned counsel for the respondent be accepted, it would make section 41 of the Act otiose so far as wakfs are concerned, for in every case of wakf the property would be held for the Almighty and not for any person. We, therefore, reject this contention and answer the question in the affirmative. Set aside the order of the High Court and hold that the respondent was rightly assessed by the Income-tax Officer at the maximum rate. Appeal allowed.
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