1984 (8) TMI 46

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....see's contention that, being a property held under trust, the income arising therefrom was not liable to be so added was rejected. His appeals to the AAC as well as to the Agricultural Income-tax Appellate Tribunal, Addl. Bench, Kozhikode, were unsuccessful. The Tribunal held that the trust in question was hit by clauses (a) and (b) of sub-s. (3) of s. 4 of the Kerala Agrl. I.T. Act, 1950. At the instance of the assessee, the Tribunal has now referred to us the following questions: " 1. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that no valid trust has been created as per document No. 626/1969 of the Sub-Registry Office, Nileswar, or even if it is held that there is a valid ....

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....rectly . ........." (iii) from assets transferred directly or indirectly to the wife by the husband otherwise than for adequate consideration or in connection with an agreement to live apart; or ........... This section shows that income derived from the asset transferred to the wife (otherwise than for adequate consideration or in connection with an agreement to live apart) is deemed to be income derived by the husband, notwithstanding the transfer. Section 4(1) reads : " Total agricultural income.-(1) Subject to the provisions of this Act, the total agricultural income of any previous year of any person comprises all agricultural income derived from land situated within the State and received by him within or without the State....

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.... (3) Nothing contained in clause (b) or clause (c) of sub-section (1) shall operate so as to exclude from the total agricultural income of the previous year of the person in receipt thereof (a) any part of the agricultural income from the property held under trust for private religious purposes which does not enure for the benefit of the public; (b) in the case of a trust for charitable purposes or a charitable institution, any agricultural income thereof, if the trust or institution is created or established for the benefit of any particular religious community or caste;....." The deed of trust indicates that the trust is intended to benefit only the members of a particular religious community. No person outside the community will de....