1978 (2) TMI 48

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....SATISH CHANDRA J.--The question of law referred by the Tribunal for our opinion relates to the assessment year 1968-69, the relevant valuation date for which was March 31, 1968. Khan Bahadur Syed Ahmad Hussain Rizvi executed a deed of waqf-alal-aulad and for charitable purposes on January 31, 1940. It was a registered document to which two supplementary instruments were executed on November 30,....

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....rs of the waqf. (ii) Muslim widows, orphans, destitutes, helpless persons and travellers in general, and (iii) Granting of scholarships for religious and worldly education and granting of aid to Muslim institutions. Out of these three charitable purposes, 10% of the income was to be spent on object b(i). The rest 10% on objects b(ii) and (iii). The Tribunal held that 80% share of the inco....

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....Act ? (ii) Whether, on the facts and in the circumstances of the case, 10% of the income of the waqf meant for spending in accordance with clause 5(c) on the sacrifice of two goats each year and on making arrangement for a sabil on some public way was exempt from tax ?" There is no doubt or controversy with regard to the interpretation of the waqf deed. Learned counsel for the revenue urged ....

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.... the waqf in accordance with the Mohammedan law. It was thus clear that distribution of 80% of the income was determinate and not fluctuating. The Tribunal was justified in taking that view. It was hence correct in holding that s. 21(1), and not s. 21(4), was applicable. This view has been upheld in CWT v. Trustees of H.E.H. Nizam's Family (Remainder Wealth) Trust [1977] 108 ITR 555, 598 (SC). ....