9911796707
TMI Blog1970 (4) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... ember, 1944 the 25th September, 1947, and the 17th March, 1951, referred to in the order, the Tribunal was right in holding that there was only one beneficiary viz., Sri Iswar Gopal Jew, under the trust? (2) If the answer to the question (1) be in the negative, then whether the income of the trust was to be assessed at the maximum rate by virtue of the first proviso to section 41(1) of the Income-tax Act, 1922 ? " The High Court answered the first question in the affirmative and, in view of that answer, it did not find it necessary to answer the second question. The facts found by the Tribunal, as could be gathered from the statement of the case submitted by it, are as follows : Shri Badriprasad Agarwalla, a Hindu governed by the Mi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the balance 1/3rd was to be retained in the hands of the trustees to meet the collection charges, taxes and other incidental expenses relating to the said properties. On September 25, 1947, Badri Prasad executed another deed to which he, Kokila Devi and Fulchand were parties. The deed was admittedly a supplement to the earlier deed dated November 3, 1944. On March 17, 1951, Badri Prasad executed a third deed. To that deed Badri Prasad, Kokila Devi and Fulchand were parties. This deed was also expressly made as a supplement to the deed of November 3, 1944. The avowed object in executing this deed was to clarify the status, rights and liabilities of the trustees and the shebaits in office for the benefit of and in the interest of the dei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly executed instrument in writing whether testamentary or otherwise ... are entitled to receive on behalf of any person the tax shall be levied upon and recoverable from such ... trustee or trustees in the like manner and to the same amount as it would be leviable upon and recoverable from the person on whose behalf such income, profits or gains are receivable and all the provisions of this Act shall apply accordingly : Provided that where any such income, profits or gains or any part thereof are not specifically receivable on behalf of any one person or where the individual shares of the persons on whose behalf they are receivable are indeterminate or unknown, the tax shall be levied and recoverable at the maximum rate, but where such pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , it cannot be said that the income or profits in question are " not specifically receivable by the trustees on behalf of any one person ." The fact that, for certain purposes, a trusteeship is considered as " property " and that the trustees have an interest in the trust is irrelevant for our present purpose. In considering the scope of section 41(1), the only thing that we have to see is whether the income in question was received by the trustees on behalf of any person. If the deity is considered as a " person " than quite clearly the case does not come within the first proviso to section 41(1) and it has to be dealt with under section 41(1). For the reasons mentioned above, these appeals fail and they are dismissed. The respondents ..... X X X X Extracts X X X X X X X X Extracts X X X X
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