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Interpretation of property held under wakf for religious or charitable purposes under Income-tax Act. Analysis: The case involved a question referred to the High Court regarding whether the property held under a wakf was for religious or charitable purposes as per the Income-tax Act. The wakf deed stated that the property was to be used for the maintenance of the donor and his children, as well as for religious or charitable purposes. The assessee claimed that the income derived from the property should be exempt from income tax. However, the Income-tax authorities disagreed, stating that the income must be applied for religious or charitable uses as specified in the wakfnama. The Commissioner opined that the reservation of income for the donee and his successors did not qualify as a religious or charitable purpose under the law. The case was referred to a larger Bench after a Division Bench of the Court had differing opinions. A preliminary objection was raised regarding the validity of the reference under section 66(3) of the Income-tax Act. The objection was overruled, stating that the intention of the Judges was clear in referring the matter to a larger Bench. The judgment discussed the principles of construction to interpret the words "religious or charitable purposes" in the Income-tax Act. It was argued that the English law principles should guide the interpretation, as the statute was drafted in English. The judgment cited precedents and emphasized the need for uniform application of tax laws across different communities. The judgment further analyzed the application of Mohammadan Law principles in the case. It referenced a Privy Council judgment that deemed a similar wakf deed invalid for religious or charitable purposes. The judgment highlighted the distinction between pious purposes and religious or charitable purposes under the Mussalman Wakf Validating Act of 1913. It concluded that the income from the property solely used for the maintenance of the assessee and his children did not qualify as income devoted wholly to religious or charitable purposes under the Income-tax Act. The Court held that the income was assessable for tax purposes. The judgment was concurred by all Judges, and the assessee was ordered to pay the costs.
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