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TMI Blog1951 (1) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... bove governs both the words trust and other legal obligation as mentioned in Section 4(3)(i) or only trusts ? The income sought to be be assessed in this case was income from property which admittedly was devoted to religious purposes. The only difference between the parties was whether these properties which produced the income, which were admittedly debutter properties, were properties held in trust for deities or properties dedicated to the deities. The question arose upon the true construction to be given to the phrase held under trust or other legal obligation wholly for religious or charitable purposes appearing in Section 4(3)(i) of the Indian Income-tax Act. To this sub-section there is appended an Explanation which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icated property as opposed to property held on trust for the deity, the whole of the income was exempt from taxation. It appears clear that the Appellate Tribunal regarded this income as income arising from property dedicated to deities rather than to property held in trust for deities. But in the view of the Appellate Tribunal it mattered not as no distinction could be drawn between property held under a private religious trust and property dedicated to a private deity. The case of course was decided by the Appellate Tribunal before the decision of this Court to which I have made reference. Mr. Pal admits that if the income in this case arose from property dedicated to deities no distinction could be drawn between this ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the deities which are being incurred to carry on the aforesaid Sheba, Mahotsab etc., or to make new construction and repairs in respect of Sree Mandir (Temple), Natyasala (Auditorium), kitchen and stores etc., the properties described in detail in the schedule given below have been dedicated for the same from the time of our ancestors as well as in our time. If that is correct translation there can be no question that the properties were regarded as having been dedicated to the deities and that the income therefrom was to be devoted to the worship of the deity. Mr. Pal however has contended that the translation is not accruate and that a more literal translation would have been the properties had been earmarked for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roperties are not in the strict sense properties held in trust or properties which are the subject matter of a trust. Once it is held that these properties were dedicated properties then the earlier case to which I have made reference admittedly applies and I would therefore answer the questions Submitted as follows :- Question (1) is answered in the negative. Question (2) is answered as follows: The last paragraph of Section 4(3)( xii) of the Indian Income-tax Act governs only the word trust and does not govern the words other legal obligation which appear in Section 4(3) (i ) of the Act. The assessees are entitled to the costs of these proceedings. Certified for two counsel. Banerjee, J.-I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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