9911796707
TMI Blog1990 (11) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ur of the assessee and against the Revenue and the Commissioner of Income-tax has preferred these appeals. We shall deal with these two questions. The first question Was in the following terms : "Whether, on the facts and in the circumstances of, the case, the incomes of Rs. 83,709, Rs. 83,709, Rs. 84,076, Rs. 84,779 and Rs. 96,43l for the assessment years 1959-60, 19,60-61, 1961-62, 1962-63 and 1963-64, respectively, relating to HEH the Nizam's Pilgrimage Money Trust are not taxable in the assessee's hands by reason of section 16(1)(c) of the Indian Income-tax Act, 1922/sections 60 and 61 of the Income-tax Act, 1961 ?" The High Court answered the is question in favour of the assessee, following its earlier decision in CIT v. Nawab Sir M ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 82 ITR 160, the High Court came to the conclusion that though, under the clause, the settlor had a wide discretion to decide upon the manner in which the income from the trust could be paid for the above purposes, such power was conferred on him only in his capacity as trustee and did not attract the first proviso to section 16(1)(c) of the 1922 Act/section 61 of the 1961 Act. The High Court, accordingly, answered the question against the Department. We have gone through the judgment of the High Court and we are of the opinion that the conclusion of the High Court follows upon the exposition of section 16(1)(c), of the Indian Income-tax Act by the decisions of this court earlier cited. It has also been brought to our notice that the Commis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Andhra Pradesh High Court in Nawab Sir Mir Osman Ali Khan Bahadur v. ITO [1970] 75 ITR 133. It appears that an appeal was preferred against this judgment which has been disposed of by this court by judgment in ITO v. Nawab Mir Barkat Ali Khan Bahadur [1974] 97 ITR 239. However, this court left open the question whether the three ladies mentioned above were wives of the settlor as contended for by the Department or not. Sh.B. B. Ahuja, learned counsel for the appellant, draws our attention to the only facts which are available to him, namely, the facts which have been already discussed in the judgment of the High Court in Nawab Sir Mir Osman Ali Khan Bahadur [1970] 75 ITR 133 (AP). It appears that in four trust deeds executed on May 10, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er 9, 1957, explaining the circumstances in which the above description was given. An affidavit by the assessee himself had also been filed before the Income-tax Officer in which he specifically asserted that, except for one Dulhan Pasha Begum, these ladies, whose names were mentioned in the affidavit, were not his wives though they enjoyed a special status as ladies of position in his palace. In the case of Jani Begum, we also find that a firman was issued by the assessee on June 7, 1959, referring to her as "lady of position". This declaration made on the occasion of the demise of this lady is a strong piece of evidence to show that the assessee had never married her and that she was only a lady of position. We are of the opinion that, i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Incometax Act, 1961 ?" We have had occasion to deal With one aspect of these questions in our decision of even date in CA Nos. 1404-07 and 1407A of 1975. So far as the first question is concerned, the issue is directly covered by the decision of this court in ITO v. Nawab Mir-Barkat Ali Khan Bahadur [1974] 97 ITR 239.In view of the said judgment, this question is no longer a live one for reference. So far as question No. 3 is concerned, this is directly governed by our decision of even date in the Civil Appeals mentioned above. Following the same, we concur with the High Court and direct that this question also need not be referred by the Tribunal. In the result, these appears fail and are dismissed accordingly. There will be no o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
