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TMI Blog1962 (10) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... because they are not a religious or charitable institution. - Appeals Nos. 248 to 253 of 1662 - - - Dated:- 19-10-1962 - SHAH, J.C., KAPUR, J.L. AND HIDAYATULLAH, M, JJ. For the Appellant: A. V. Viswanatha Sastri, R. S. Mahanty and B. P. Maheshunri, For the Respondent: N. D. Karkhanies and R. N. Sachthey, JUDGMENT SHAH J. These six appeals raise a common question as to the liability of the assessees to pay income-tax in respect of certain receipts known as Annadan during the assessment years of 1946-47 to 1951-52. The assessees are a Hindu undivided family and engage themselves as Pandas or priests who assist devotees in performing worship and ceremonies especially connected with pilgrimage to the temple of Jagannath at ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), Gaudbad Sahi, Puri Town for the Bhog of Sree Jagannathji, Rs. The Pandaji will utilise this amount for the Bhog of Jagannathji and the Prasad will be enjoyed by himself and the people of the district to which I belong. I,. signed this Attika Annadan." The amounts received or collected from the pilgrims under Annadan Patras (which were also styled as Attika Patras) were credited in an account known as Annadan Accounts and expenses of "food offerings" to the diety were defrayed out of that fund. The assessees claim that out of the unspent balance they purchased property in the name of the diety Jagannath. The Income-tax Officer held that Annadan received by the assessees was not exempt from liability to tax, for, in his view, there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilgrims was not used for the exclusive purpose of offering Bhog Having regard to the way in which the pilgrims are attracted, brought to Puri, treated there, taken to the temple, fed and ultimately induced to make a payment, there is only once conclusion possible that the business of pilgrim-traffic was carried on by the assessee. The facts do not show that any trust was intended or created by the pilgrims" The Tribunal also observed that the assessees were not an institution and they were not exempt under section 4(3)(i) of the Act from liability to pay income-tax, especially because the objects for which Annadan fund was to be expended were not public objects, and the payments made by the pilgrims as Annadan could not be said to be for th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t proceeded to consider the appropriate tests for ascertaining whether the trust was public or private and held that the trust created by the Annadan patra was a private religious trust and the income of the assessees derived from that source was not exempt from liability to pay income-tax under clause (i) or clause (ii) of sub-section (3) of section 4 of the Indian Income-tax Act. The material part of sub-section (3) of section 4 of the Indian Income-tax Act as it stood at the relevant time was as follows : "Any income, profits or gains falling within the following classes shall not be included in the total income of the person receiving them : (i) Subject to the provisions of clause (c) of sub-section (i) of section 16, any income d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to be rejected. This interpretation of the relevant provisions is sufficient to dispose of the appeals, but we deem it necessary, having regard to the manner in which the case was approached by the High Court, to indicate the restrictions inherent in the exercise of its jurisdiction by the High court. The Tribunal held that the receipts called Annadan were earned by the assessees in the conduct of their business as Pandas and the facts did not indicate that any trust was intended or created by the pilgrims. Under the scheme of the Income-tax Act the function of determining facts rests with the Tribunal and, on the facts found, the High Court has to advice the Tribunal as to the law applicable. The Tribunal having found that the receipts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eference the High Court addressed itself to a question which was not referred by the Tribunal. The High Court on the assumption that a trust was intended to be created by the pilgrims by giving Annadan proceeded to hold that the trust was a private trust. In so holding the High Court attempted to exercise not the advisory jurisdiction in respect of the decision of the Tribunal which alone is conferred by section 66(2) of the Indian Income-tax Act, but jurisdiction which in substance was appellate. The Tribunal had recorded a finding that there was in fact no trust intended or created by the pilgrims. On that finding no question as to the applicability of section 4(3)(i) in any event could arise. It was open to the assessees to demand that ..... X X X X Extracts X X X X X X X X Extracts X X X X
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