Estate duty on wakf property is limited to the deceased's beneficial interest, not the entire non-charitable residue.

In a wakf where the mutawalli held property partly for charity and partly for the maintenance of the founder's male descendants, estate duty on death was confined to the beneficial interest actually enjoyed for maintenance. A mutawalli is only a manager of wakf property and does not own or take the income personally; the deceased's role was limited to applying the income for the entitled beneficiaries. Where no specific shares were fixed, the maintenance benefit had to be divided per capita among the male descendants entitled to it. The assessable value therefore could not extend to the whole non-charitable residue, but only to the portion attributable to the maintenance beneficiaries.

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Issues: Whether, on the death of the mutawalli of a wakf property partly dedicated for charitable purposes and partly for the maintenance of the male descendants of the founder, the entire net income of the remaining property could be treated as the deceased's interest passing on death, or whether the assessable value had to be confined to the share attributable to the beneficiaries entitled to maintenance.

Analysis: The finding in the civil court proceedings established that the property was only partly wakf for charity and that the balance was dedicated for the maintenance of the male descendants of the original founder. Under the Estate Duty Act, property passing on death in a case of cesser of interest is valued by reference to the extent of the interest enjoyed by the deceased. A mutawalli is not the owner of the wakf property and does not take the income in a personal capacity; he is only a manager ensuring that the beneficiaries receive the usufruct. The right to maintenance belonged to the male descendants, and the deceased merely discharged the obligation of applying the income for that purpose. Where no specific shares are fixed, the benefit is to be divided per capita among the entitled male descendants.

Conclusion: The deceased was not liable to estate duty on the entire remaining property, and the assessable value had to be determined only after ascertaining the number of male descendants entitled to maintenance and applying the per capita rule, in favour of the accountable persons.

Final Conclusion: The reference was answered by holding that only the beneficial interest attributable to the entitled male descendants could be brought to charge, and not the whole of the non-charitable residue of the property.

Ratio Decidendi: In a wakf where the mutawalli has no personal beneficial ownership and the income is earmarked for maintenance of specified descendants, estate duty attaches only to the extent of the deceased's beneficial interest, to be valued by the share of the persons actually entitled to maintenance.

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