TaxTMI 
TaxTMI 
1970 (7) TMI 5
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.... 1959-60, the corresponding period being the 31st March, 1957, and the 31st March, 1958. The material facts bearing on this reference are as follows: The assessee was previously the ruler of a Native State called the Banaras State. On 5th September, 1949, there was an agreement between the Governor-General of India and the assessee. India at that time enjoyed dominion status under the British Crown. Article I of that agreement, extracts from which have been annexed to the statement of the case as annexure " A ", runs as follows: " The Maharaja of Banaras hereby cedes to the Dominion Government full and exclusive authority jurisdiction and powers for and in relation to the governance of the State and agrees to transfer the administr....
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....half of the Governor-General of India and also by the assessee. There is no dispute that the agreement of merger is binding on both the parties. The above agreement dated 5th September, 1949, was followed by a letter written by the said Sri V. P. Menon to the assessee conveying certain assurances on behalf of the Government of India. Paragraph 3 of this letter runs as follows : " 3. The gaddi of the Maharaja shall continue at Fort Ramnagar and the Fort and its appurtenances and Your Highness' private palace known as Nandeswar Palace shall not be liable to attachment or sale and shall descend to the successors of your Highness. This will continue as hitherto to be exempt from all property or other municipal taxation." After the W....
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....non to the assessee which formed part of the agreement. It was pointed out that according to paragraph 3 of that letter the assessee would continue as hitherto, to be exempt from " all property or other municipal taxation. " It was urged that the wealth-tax is a tax on property and it was, therefore, covered by paragraph 3 of the aforesaid letter. It was also contended that, at all events, the words " other municipal taxation " in paragraph 3 of the letter should be construed by the rule of ejusdem generis. On this construction the explanation covers wealth-tax payable on property. There was another argument based on articles 291 and 362 of the Constitution. It was contended that these articles purport to preserve the personal rights and pr....
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....ndeswar Palace' was rightly included in the net wealth of the assessee for the assessment years 1957-58 and 1958-59 ?" A similar matter came up for consideration of a Full Bench of this court in the case of Commissioner of Income-tax v. Nawab of Rampur. The facts in that case were that the Nawab of Rampur was the ruler of the former State of Rampur. Since 1944, the Rampur Income-tax Act, 1944, was in force in that State, and under section 3A of that Act, the Act was not to apply to the Nawab. By an agreement between the Governor-General of the Dominion of India and the Nawab of Rampur, the Nawab of Rampur ceded to the Dominion Government full and exclusive authority, jurisdiction and powers for and in relation to the governance of the St....