1949 (9) TMI 27

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....1922, is chargeable at the maximum rate under the first proviso to Section 41(1) of the Income-tax Act." Sri Sital Chandra Banerji, a pious Hindu governed by the Dayabhaga School of Hindu law, dedicated very valuable properties to two idols--Sri Sri Iswar Sita, and Sri Sri Iswar Ram--by an Arpannama dated 31st March, 1922. The Income-tax Officer assessed the assessee under Section 41(1) of the Income-tax Act and assessed the deities as an association of persons at the maximum rate on the ground that the shares of the beneficiaries were indeterminate. An appeal was preferred to the Appellate Assistant Commissioner who set aside the assessment and held that the shares of the deities were determinate and the entire income was equally div....

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....f. 6 of 1948) [1951] 20 I.T.R. 314 which we have just disposed of. We have held that when there is a gift or bequest to two deities without any specification of shares the deities are equally entitled to both the corpus and the income of the properties and they should be taxed as such. There is no room for the contention that the shares were indeterminate or unknown under the proviso to Section 41(1) of the Income-tax Act. Dr. Gupta urged before us that in this case having regard to the deed of dedication a small amount has been prescribed by the dedicator for the Seva and Bhog of the deities and that a number of provisions has been made for periodical worship, maintenance of poor students, performance of other pujas, support of helpless....

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....he assessment. We should point out that with regard to the properties the deities or the shebaits in charge of the deities were being taxed under Section 9 of the Income-tax Act, and the tax was levied on the whole of the income of the dedicated properties which was realised by the shebaits on behalf of the deities without making any deduction for the charities and other religious or pious uses mentioned in the Arpannama. We have held that the two deities are co-owners of the properties in equal shares and, therefore, each of them is also the owner of a moiety of the income. There is thus for assessment purposes no question of a variable income for the deities which was indeterminate. Whatever may be paid by the shebaits for the maintenance....