TMI Blog1997 (1) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... made by a Deed of Endowment dated 19-6-1990. The terms and conditions of the endowment were substantially the same in both the endowments. The Debutter estates were christened Shree Ganeshji Maharaj Estate and Shree Shankar Bhagwan Estate. The lady constituted herself as the Shebait in respect of both the deities. She also provided for successive appointments of Shebait. By clause (5) of both the Deeds, it was provided that the Shebaits shall hold the properties dedicated for and on behalf of the deities and manage the same to the best advantage. By clause (6) it was provided that the income from the dedicated properties shall be applied towards the maintenance and repair of the temples, towards remuneration of the Shebaits and towards the expenditure in the daily worship of the deities and for festive and ceremonial occasions. The Shebaits were also empowered to incur expenditure for the pleasure of the deities. They were made accountable for the receipts and expenditure. They were also given the power to accept any gift or donation, contribution, etc. either in cash or in kind and to apply the whole or part of the income of the Debutter Estate or accumulate the same towards the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer and upheld the assessments. 6. The primary question which arises in these appeals is whether the deities the idols, namely, Shree Ganeshji Maharaj and Shree Shankar Bhagwan should have come into existence when the endowments were created. In the year 1909, a Full Bench of the Calcutta High Court comprising Sir Lawrance Jenkins, the Hon'ble Chief Justice and Hon'ble Justice Sephen, Hon'ble Justice Asutosh Mukherjee, Hon'ble Justice Coxe and Hon'ble Justice Chatterjee in the decision reported as Bhupatinath Smriti Thirtha v. Ramlal Moitra 10 Cal. Law Journal -- 355 have held that the general rule which requires that for the validity of a gift, the relinquishment must be in favour of a sentient being does not apply to a bequest to trustees for the establishment of an image and the worship of a Hindu deity after the testator's death. It was held that such a disposition is for religious purpose and was valid under the Hindu Law. The High Court after referring to the various texts of Hindu Law held that the fact that the idol or image was established and consecrated for the first time after the testator's death did not invalidate the provisions in the win relatin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rson fictions of what are believed to be the various attributes or the cosmic manifestations of the Supreme Being". In Mukherjee's treatise on Hindu Law of Religious and Charitable Trusts (2nd Edn. page 147) it is observed that "a dedication to an idol is really a dedication to the deity who is over present and ever-existent, the idol being no more than the visible image through which the deity is supposed specifically to manifest itself by reason of the ceremony of consecration." 8. The above principle has been extended to cases other than bequests made by will. In Chatarbhuj v. Chaturjit [1911] 33 All. 253 certain zamindari property was expressed to be given to an idol which was not in existence at the time of execution of the Deed. Possession of the property was handed over to a certain person as Pujari. It was held that the deed was valid and created a trust in favour of the idol, following the principle laid down in the Full Bench decision of the Calcutta High Court. The suit in that case was based, inter alia, on the ground that on the date of the endowment the image had not been duly consecrated and, therefore, there was no valid endowment under the Hindu Law. Their Lordsh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons and that whereas under the 1922 Act, this position was implicit, under the 1961 Act it has been made explicit and beyond challenge. It was further held that the Hindu idol is a juristic entity capable of holding property. It can be taxed through its Shebaits who are entrusted with the possession and management of the property dedicated. The deity falls within the meaning of the word 'individual' and can be treated as a unit of assessment. In view of this clear legal position, the Assessing Officer in the present appeals was wrong in treating the assessees as private religious trusts assessable under section 164 of the Act. We hold that the assessees have to be taxed as individual. 11. So far as section 2(24)(iia) is concerned, this section has to be read in the context of the introduction of the present section 12. It is significant that section 2(24)(iia) was inserted with effect from 1-4-1973 simultaneously with the present section 12, both of which were introduced from the said date by the Finance Act, 1972. Section 12 makes it clear by the words appearing in parenthesis that contributions made with a specific direction that they shall form part of the corpus of the trust ..... X X X X Extracts X X X X X X X X Extracts X X X X
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