9911796707
TMI Blog1979 (1) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... o the trust and question No. 2 is concerned with the trustee. For the purpose of income-tax each assessee is a unit by itself and consequently the reference of the two questions together creates some confusion. Since, however, all the facts necessary for answering the two questions are stated in the statement of the case, it may not be proper to refuse to answer either of the two questions. The relevant facts are that the late Maharajadhiraja was the holder of the impartible estate, generally called Darbhanga Raj. The estate was an impartible estate. The Maharaja was assessed to income-tax in the status of " individual " for the relevant assessment years. The Maharaja created a public religious trust under a deed dated 16th March, 1949, known as the " Kameshwar Religious Trust, Darbhanga " in favour of certain deities, endowing properties having gross total income of Rs. 3,76,773-15-6, making himself the sole trustee. Paragraph 7 of the trust deed was to the following effect : " The declarant declares that henceforth he holds and will hold the properties detailed at the foot hereof in schedule 'A' in Trust for religious purposes of maintaining the religious institutions more full ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee's case for the assessment year 1957-58, in which the Tribunal had held that unless the terms of the trust deed were modified, the remuneration which accrued to the assessee remained available to him. The ITO further observed that since the decision of the Tribunal had been made for the assessment year 1957-58, necessarily, the effect of the Bihar Land Reforms Act on the annuity had been taken into consideration by the Tribunal while passing such order. The assessee failed in his appeals against the assessments before the AAC. The AAC, while disposing of the assessee's contention, relating to the remuneration issue, observed that there was no statutory bar under the Act to the payment of such remuneration to a trustee. The assessee's further appeal to the Tribunal also failed. The Tribunal, while dealing with the appeals, observed that : " ........ The Bihar Land Reforms Act is no bar for payment of such remuneration. In fact, it provides for payment of remuneration not exceeding 15% of the net income from the trust properties. In the circumstances, the inclusion of 15% of the net income from the trust properties as the appellant's income by way of remuneration from tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... instalments paid towards the capital value of the assets, but as income from the assets. Section 24(1) of the Act prescribes the rate of compensation payable to the ex-landlords for the vesting of their rights in the State. Sub-section (3) of s. 24 of the Act prescribes the mode of payment to public religious charitable trusts which are held to be genuine. According to this provision, " the net income or any portion of the net income in respect of any estate or tenure held under the trust has been dedicated exclusively to charitable or religious purposes without any reservation of pecuniary benefit to any individual, the compensation payable in respect of such income or such portion thereof shall, instead of being assessed under cl. (1), be assessed as perpetual annuity equal to such net income or such portion thereof, as the case may be ". It obviously means that the income arising from the trust properties shall continue to be paid to the trust, with only this difference that after the vesting of the estate, now it shall be paid by the State. The annuity received shall, therefore, continue to bear the same character as it had when the assets, out of which the income arose, wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not sufficient for Pooja Path, Bhog Rag of the Deities and for proper repairs to the Temples. As I am anxious that these Deities and the Temples being the old institutions in the Raj should be properly maintained I desire that the amount of Rs. 28,788-12-0 reserved in the Trust as my remuneration should be distributed proportionately amongst the Deities which are beneficiaries of the Trusts so that their Pooja Path and Bhog Rag may be properly made and the Temples properly maintained which is the sole object of this Trust. " According to learned counsel for the assessee, properly read, these narrations clearly meant that the assessee was relinquishing his right to receive the trustee's remuneration. According to him, therefore, it was a case in which the income ceased to be his income at its very inception. Had there been an ambiguity in the idea expressed under the said deed of relinquishment, the benefit of the ambiguity should have gone to the assessee. It is true that the trustee has expressed his desire that the amount payable to him as remuneration should go towards the Pooja Path and Bhog Rag of the deities, but the fact remains that he still treats the said amount a ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
