9911796707
TMI Blog1969 (2) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... of the shebaits as trustees. In respect of the assessment years 1950-51 and 1951-52, the two shebaits contended that there was no trust executed in the case and as such the income from the property did not attract liability to tax and particularly the assessments made in the name of Hem Chandra Naskar and his brother, Yogendra Nath Naskar, as trustees of the debuttar estate could not be sustained. The Appellate Assistant Commissioner accepted this contention on appeal and set aside the assessments. Finding that the assessments have been set aside on the footing that the status of the assessee had not been correctly determined, the Income-tax Officer initiated proceedings for the assessment years 1952-53 and 1953-54 against Hem Chandra Naskar and Yogendra Nath Naskar, the shebaits of the two deities and completed the assessments on the deities in the status of an individual and through the shebaits. The claim for exemption under the proviso to section 4(3)(i) of the Income-tax Act was rejected. On appeal the Appellate Assistant Commissioner upheld the assessment orders of the Income-tax Officer. The assessee appealed to the Appellate Tribunal and contended that the deities were not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Act, 1922. It is well established by high authorities that a Hindu idol is a juristic person in whom the dedicated property vests. In Manohar Ganesh v. Lakhmiram, called the Dakhor temple case, West and Birdwood JJ. state: "The Hindu law, like the Roman law and those derived from it, recognises, not only corporate bodies with rights of property vested in the corporation apart from its individual members, but also the juridical persons or subjects called foundations. A Hindu, who wishes to establish a religious or charitable institution, may, according to his law, express his purpose and endow it, and the rule will give effect to the bounty, or at least protect it so far, at any rate, as it is consistent with his own dharma or conceptions of morality. A trust is not required for this purpose; the necessity of a trust in such a case is indeed a peculiarity and a modern peculiarity of the English law. In early times a gift placed, as it was expressed, 'on the altar of God' sufficed to convey to the Church the lands thus dedicated....... It is consistent with the grants having been made to the juridical person symbolized or personified in the idol..." The same view ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rred of an action in case they would complain of things wrongfully done by their guardians while they are under age' (Pollock and Maitland's History of English Law, volume I, 483)......" In Pramatha Nath Mullick v. Pradyumma Kumar Mullick Lord Shaw observed: "A Hindu idol is, according to long established authority, founded upon the religious customs of the Hindus, and the recognition thereof by courts of law, a 'juristic entity'. It has a juridical status with the power of suing and being sued. Its interests are attended to by the person who has the deity in his charge and who is in law its manager with all the powers which would, in such circumstances, on analogy, be given to the manager of the estate of an infant heir. It is unnecessary to quote the authorities; for this doctrine, thus simply stated, is firmly established." It should however be remembered that the juristic person in the idol is not the material image, and it is an exploded theory that the image itself develops into a legal person as soon as it is consecrated and vivified by the Pran Pratishta ceremony. It is not also correct that the supreme being of which the idol is a symbol or image is the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uristic persons. One was a corporation or aggregate of persons which owned its juristic personality to State sanction. A private person might make over property by way of gift or legacy to a corporation already in existence and might at the same time prescribe the particular purpose for which the property was to be employed, e.g., feeding the poor, or giving relief to the poor or distressed. The recipient corporation would be in a position of a trustee and would be legally bound to spend the funds for the particular purpose. The other alternative was for the donor to create an institution or foundation himself. This would be a new juristic person which depended for its origin upon nothing else but the will of the founder provided it was directed to a charitable purpose. The foundation would be the owner of the dedicated property in the eye of law and the administrators would be in the position of trustees bound to carry out the object of the foundation. As observed by Sohm: "During the later Empire--from the fifth century onwards--foundations created by private individuals came to be recognised as foundations in the true legal sense, but only if they took the form of a 'pia ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who, owing to the diversity of intellects (matibheda) is conventionally spoken of (parikalpya) in various ways as Brahma, Vishnu and Mahesvara. It is however possible that the founder of the endowment or the worshipper may not conceive on this highest spiritual plane but hold that the idol is the very embodiment of a personal God, but that is not a matter with which the law is concerned. Neither God nor any supernatural being could be a person in law. But so far as the deity stands as the representative and symbol of the particular purpose which is indicated by the donor, it can figure as a legal person. The true legal view is that in that capacity alone the dedicated property vests in it. There is no principle why a deity as such a legal person should not be taxed if such a legal person is allowed in law to own property, even though in the ideal sense, and to sue for the property, to realise rent and to defend such property in a court of law again in the ideal sense. Our conclusion is that the Hindu idol is a juristic entity capable of holding property and of being taxed through its shebaits who are entrusted with the possession and management of its property. It was argued on beh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns of the two Acts counsel on behalf of the appellant contended that a restricted meaning should be given to the word "individual" in section 3 of the earlier Act. We see no justification for this argument. On the other hand, we are of the opinion that the language employed in the 1961 Act may be relied upon as a parliamentary exposition of the earlier Act even on the assumption that the language employed in section 3 of the earlier Act is ambiguous. It is clear that the word "individual" in section 3 of the 1922 Act includes within its connotation all artificial juridical persons and this legal position is made explicit and beyond challenge in the 1961 Act. In Cape Brandy Syndicate v. Inland Revenue Commissioners, Lord Sterndale M. R. said: "I think it is clearly established in Attorney-General v. Clarkson that subsequent legislation on the same subject may be looked to in order to see what is the proper construction to be put upon an earlier Act where that earlier Act is ambiguous. I quite agree that subsequent legislation, if it proceed upon an erroneous construction of previous legislation, cannot alter that previous legislation; but if there be any ambiguity in the earlier le ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
