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TMI Blog1960 (3) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ellant - - - - - Dated:- 15-3-1960 - Judge(s) : J. L. KAPUR., M. HIDAYATULLAH., S. K. DAS JUDGMENT The judgment of the court was delivered by KAPUR, J. --- This is an appeal by special leave against a judgment and order of the High Court of Bombay. The assessee, Her Highness Maharani Kesarkunverba Saheb, the Raj Mata of Morvi State, is the appellant and the Commissioner of Income-tax, Bombay North, is the respondent. The question that arises for decision is whether the annual cash allowance paid to the appellant in circumstances stated below falls within paragraph 15(1)(i) of the Part B States (Taxation Concessions) Order, 1950 (hereinafter referred to as the Order) and is therefore exempt from income-tax. The appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... "In order to preserve permanently your status and dignity the village of Mouje Mota Dahisara ...... is hereby granted to you as a gift in pursuance of the immemorial tradition of this State ...... The said village and the land etc., thereof have been granted to you in order to maintain your status and dignity as the Queen Mother as stated above. You may enjoy the same in peace exclusively. On your death the right of enjoyment of the entire rights, together within the restrictions mentioned in the present writing, shall vest in our Akhan Saubhagvanta Maharani Shri Vijay Kunvar of Rangpur." On March 20, 1948, the State of Morvi became a part of the Saurashtra Union. The Government of Saurashtra refused to continue the maintenance allow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted : "Most ladies are sentimental and she is no exception, and says her 'Abru' would go if she loses her village, so we suggested that if she gets the income of the village, whatever it may be and any amount over and above that will be given to her as Jiwai, making a total of Rs. 60,000 a year ; with this she can say she got both the things and her prestige will not suffer." On March 30, 1950, the Government of Saurashtra passed a resolution that in pursuance of the decision taken at the Jamnagar Conference the grant of the village Mota Dahisara would be resumed and in lieu thereof a cash annuity of Rs. 35,807 would be paid. The appellant was also granted Jiwai as Rajmata of Rs. 24,193 per annum and thus a sum of Rs. 60,000 per annum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 66(1) of the Income-tax Act to the High Court : "Whether there was material for the Tribunal to hold that the sum of Rs. 35,807 granted to the assessee was a maintenance allowance exempt within the meaning of paragraph 15(1)(i) of the Part B States (Taxation Concessions) Order, 1950 ?" which was reframed by the High Court as follows : "Whether on the facts and circumstances of the case the sum of Rs. 35,807 granted to the assessee was a maintenance allowance exempt within the meaning of paragraph 15(1)(i) of the Part B States (Taxation Concessions) Order, 1950 ?" The High Court held that Rs. 35,807 and Rs. 24,193 were two distinct heads of cash annuities, the former in lieu of village Mota Dahisara and the latter by way ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public revenue." The respondent on the other hand submitted that the words of the resolution dated February 26, 1949, and of the grant and particularly the following recitals therein: "From ancient times there has been a tradition in our family to grant a village to the Maha Rani for her enjoyment in order to maintain her status and dignity" showed that the grant of the village was not by way of maintenance but merely to maintain a tradition of the family for keeping up the status and dignity of the appellant, and this, it was submitted, was fortified by the letter of the appellant's husband dated November 19, 1949, where His Highness stated that the appellant's 'Abru' (prestige) would go if she were to lose the village. Reference ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her a sure source of income ; but, merely because she wanted the village and in the resolution of March 30, 1950, mention is made of a sum in lieu of income from the village, the nature of the grant which in this case was by way of maintenance would not change. The question which was referred to the High Court was whether there was material to hold that the sum of Rs. 35,807 was maintenance allowance, but the High Court reformulated this question and after going into various documents it came to a conclusion different from that of the Tribunal and it reversed the findings of the Tribunal and answered the question in a manner suggestive of an appellate rather than advisory jurisdiction. In our opinion the High Court could not go behind t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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