TaxTMI 
TaxTMI 
TaxTMI 
1968 (10) TMI 43
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.... orphanage in Malabar. There was a provision that out of the income of the endowed properties, after meeting all expenses, a sum of one anna in the rupee was to be spent by the mutawalli-the petitioner himself-for the support of orphan boys and girls in Tellicherry. On these provisions, the Agricultural Income-tax Appellate Tribunal overruled the petitioner's contention that the income from the wakf properties had been set apart wholly for religious or charitable purposes and was exempt from taxation. Exhibit P-6 is a copy of its order in the appeals relating to the years 1958-59 to 1961-62. In this writ petition to quash the same, two questions have been raised : (1) Whether the income from the wakf properties is liable to be assessed und....
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....d under trust or other legal obligation wholly for religious or charitable purposes in so far as such income is applied or accumulated for application to such religious or charitable purposes as relate to anything done within the taxable territories, and in the case of property so held in part only for such purposes, the income applied or finally set apart for application thereto..." In this sub-section " charitable purposes " includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility, but nothing contained in clause (i) or clause (ii) shall operate to exempt from the provisions of this Act that part of the income from property held under a trust or other legal obligation for p....
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....Wakf Validating Act of 1913, the settled position was that there can be no valid dedication by way of wakf unless it was pre dominantly one for a charitable purpose. If the dominant object was to perpetuate the property in the family of the settlor, or to use it for the aggrandizement of the settlor and the members of his family, the wakf would be regarded as illusory and void. The 1913 Act, in brief, recognised that there can be valid wakf for purposes recognised by the Muslim law as religious, pious, or charitable. With this historical background, a Full Bench of the Lahore High Court in Umar Baksh v. Commissioner of Income-tax had to consider the claim for exemption under section 4(3)(i) of the Indian Income-tax Act, 1922, of income fro....
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....l Bench of the Madras High Court in Commissioner of Income-tax v. M. Jamal Mohamed Sahib. This decision noticed that the words in the last clause of section 4(3)(i) of the Income-tax Act, denying exemption to income of a private religious trust which does not ensure for the benefit of the public, were added by the amendment made in 1939, and observed that it was made to put beyond all doubt the intention of the legislature not to exempt even private trusts for religious purposes. In East India Industries (Madras) Ltd. v. Commissioner of Income-tax, the Supreme Court held that where one of the objects of the Agasthyar Trust was not charitable, the income derived therefrom was not from property held wholly for a charitable purpose, and theref....
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....on or association of persons as arises from assets transferred otherwise than for adequate consideration to the person or association by such individual for the benefit of his wife or minor child or both. " It was not contended that the section is not attracted to the case on hand. Reliance was placed on the decision in Abdul Jalil Khan v. Agricultural Income-tax Board, Lucknow. The decison, as observed by the Tribunal, seems to have proceeded on the special provisions of sections 3 and 9 of the U.P. Agricultural Income-tax Act, 1948, and it was ruled that the income from the wakf properties held by the mutawalli and the income from his personal properties should be assessed separately and cannot be clubbed together. The wakf deed in that ....